26 May 2014

Martinborough Vineyard accepts offer

2:00 pm on 26 May 2014

The Board of Martinborough Vineyard Estates has unanimously recommended shareholders accept a take-over offer from American billionaire, Bill Foley.

Mr Foley launched the take-over offer for Martinborough Vineyard Estates in May in a bid to secure more pinot noir to export to the United States.

Martinborough Vineyard Estates has voted Foley Family Wines takeover offer.

Martinborough Vineyard Estates has voted Foley Family Wines takeover offer. Photo: PHOTO NZ

Mr Foley is offering the 600 investors in Martinborough Vineyard Estates one share in his NZAX-listed company, Foley Family Wines, for every 28 of theirs.

HIs offer values the company at around $1.86 million, which is just over half of what it was worth nine months before according to Martinborough Vineyard Estate's last published accounts.

The company's appraisal report said Martinborough Vineyard Estate has a risk of becoming insolvent unless it can raise additional capital and if shareholders reject the offer from Mr Foley, shareholders will force the company to look for alternative options to raise further capital to continue trading, or ask to appoint a receiver or liquidator.