Evans & Tate conducts due diligence on Yarraman offer

Wembley-based winemaker Evans & Tate Ltd will conduct due diligence on a takeover offer issued by Sydney-based Yarraman Winery Inc, to come to a decision by March 20, the company has announced.

The full text of a company announcement is pasted below

Following a series of offers and counter-offers between Evans & Tate Ltd and Yarraman Winery Inc. (Yarraman), the companies have today agreed to the manner in which they will proceed with the Yarraman proposal. The following are conditions precedent that must be satisfied:

(1) A 21-day period of due diligence investigation by each of ETW and Yarraman will be conducted to their respective satisfaction. ETW's due diligence will allow it to verify the debt and equity commitments for Yarraman's proposal as well as Yarraman's forecasts. Due diligence is scheduled to be completed on 14 March 2007 at 5.00pm.

(2) During the due diligence period, ETW has granted Yarraman "no-shop" exclusivity, subject to Yarraman meeting specific milestones concerning the provision of due diligence information to ETW. Exclusivity is also subject to the right of ETW to consider any new unsolicited offer presented to it and accept that offer if it is superior.

The terms of the Yarraman proposal as it relates to ETW stakeholders and the requirement for the parties to enter into a merger implementation agreement by 5:00pm WDST on 20 March 2007 remain unchanged from the announcements made previously by the company.