Lion purchasers Penfolds stake

Press, 17 November 1981, Page 26

Lion purchasers Penfolds stake

PA Auckland Lion Breweries has bought a 35 per cent holding in Penfolds Wine (NZ), Ltd, for about $2.5 million. Penfolds has also given Lion an option to buy a majority shareholding although the option is not exercisable immediately. The move would seem to rule out the wine company, from becoming listed on the stock exchange. Penfolds will now be able to complete the first stage of its new Gisborne winery which has been started at a cost of $4.25 million. The first stage will move a storage capacity of four

million litres. This compares with the Henderson capacity of six million litres. Further development is expected. The Lion purchase comes after the withdrawal of the recent offer of shares to the public in Penfolds Wines (NZ). As a consequence Penfolds approached Lion. At any time between the end of June, 1984, and the end of September, 1986, Lion has the option to purchase all the shares owned or controlled at such time by certain major shareholders. Lion also has the option to buy a lesser percentage as may be required to increase its stake in Penfolds to at least 51 per cent.

If all the shares on option were brought, Lion would own 74.5 per cent of Penfolds’ issued capital.

The 2,750,000 ordinary 50c shares at a premium of 41c issued to Lion rank equal in all respects with Penfolds’ present issued ordinary share capital, and take the number of ordinary (50c) shares on issue to about 7.85 million.

The purchase, which is understood to have been arranged through a merchant banker, Chase-NBA Group, Ltd, has received the consent of the Examiner of Commercial Practices.