29 Jun 2012

US plans majority stake in NZ Wine Co

1:32 pm on 29 June 2012

A wealthy US company has confirmed plans to take a majority slice of the struggling New Zealand Wine Company, if shareholders and the Overseas Investment Office approve.

Foley Family Wines, owned by American billionaire Bill Foley, plans to take an 80% stake in the listed wine company which markets the Grove Mill, Sanctuary and Frog Haven brands.

The deal satisfies the wine company's bankers, who wanted it to raise $5 million by the end of the month to reduce bank debt because it is in breach of its banking commitments.

The deal still needs approval from shareholders and the Overseas Investment Office.

More details about the deal are being sent to shareholders ahead of a special meeting on 14 August.

Foley Family Wines' brands in New Zealand include Clifford Bay, Goldwater and Dashwood.

Bill Foley also owns the exclusive Wharekauhau lodge in Wairarapa.