Electricity network company Marlborough Lines says its purchase of the remainder of Yealands Wine Group will benefit electricity consumers.
Grapes at Yealands Estate growing in the Marlborough sunshine, helped by classical music piped across the vineyard. Photo: RNZ / Tracy Neal
Chief financial officer Gareth Jones confirmed it now had full ownership of the group founded in 2002 by Peter Yealands, with the purchase made from profits on other investments.
The Blenheim-based company, which is owned by a trust on behalf of the community, has had a stake in the wine group company since 2015.
It would not say at this stage how much it paid for the remaining 14 percent share holding.
Chair David Dew said in a statement it was subject to a confidentiality agreement, but the information would be released in due course.
Mr Dew said the acquisition by Marlborough Lines was funded at no cost to the electricity consumers of Marlborough, but from profits it has made from investments within the electricity sector outside Marlborough.
"The complete ownership of Yealands Wine Group will result in increased annual distributions to the electricity consumers of Marlborough.
"We acknowledge the vision, resolve and commitment of Peter Yealands in the establishment of Yealands Wine Group, which is one of the major players in the New Zealand wine industry," Mr Dew said.
The group's annual revenue exceeded $100 million, including from wine exports to about 80 countries.
Mr Dew said there were plans to expand the wine group for the benefit of electricity consumers
"Marlborough Lines is unique in owning such a significant investment among the electricity distribution network in New Zealand, but equally it is unique in that it has achieved significant success in its investments.
"The financial benefits of these investments will ultimately flow through to the electricity consumers of Marlborough through the Marlborough Electric Power Trust," Mr Dew said.
Marlborough Lines also owned 50 percent of Nelson Electricity.
