The race to acquire Evans & Tate officially gained a third participant today as expected, with the Australian arm of US-listed Yarraman Winery Inc putting a fresh takeover offer to the Margaret River winery's corporate advisers.
A Yarraman spokesman said he could not comment on the proposed deal because it was unclear whether the board was in possession of the offer.
WA Business News understands that Yarraman's adviser, Patersons Securities, today sent details of the deal to E&T's corporate adviser, GEM Consulting.
It is understood Yarraman's offer will include a $20 million to $30 million rights issue underwritten by Patersons priced at between 5 cents and 10 cents a share.
WA Business News last week revealed Yarraman, which failed in a $148 million takeover of E&T earlier this year, was likely to make a bid this week.
Peter Fogarty's Pendulum Capital Pty Ltd and Jack Bendat-linked Ferngrove Vineyards Ltd have already made competing bids for E&T. Pendulum is proposing a $16.7 million rights issue at 5 cents a share while Ferngrove is proposing a rights issue to raise up to $20 million at 5 cents a share. Both offers involve giving ANZ equity in E&T in return for extinguishing about half of the company's debt.
WA Business News understands Yarraman's deal will eliminate all of E&T's debt to ANZ, which stands at about $100 million. In its place will be a long-term debt facility with GE Commercial Finance.
Ferngrove chief executive officer Anthony Wilkes said he was not aware of any details of the Yarraman bid.
Mr Wilkes said Ferngrove was well advanced in its due dilligence and hoped the E&T board would make a decision on which offer to back by the end of the week.
He believed Ferngrove's deal would leave E&T with a stonger balance sheet because it was bringing $30 million in assets, a significant wine contract with Foster's Group Ltd and raising additional money to reduce E&T's debt levels.
