St Laurence looks to grapes
St Laurence Group is in “white knight” mode again, with an offer to underwrite a rights issue for Marlborough vineyard The Crossings.
Tuesday, June 28th 2005, 3:51AM
by Rob Hosking
The proposal is for a one for one rights issue, which would, says St Laurence managing director Kevin Podmore, “enable them to retire all their debt, plus leave them with a bit of cash.”
Other options being considered by shareholders include The Crossings struggling on in current structure, or selling some of its assets to repay debt.
Further details are still being kept under wraps. Assuming the shareholders approve the deal, St Laurence still has to carry out due diligence on The Crossings, and future developments will depend very much on what the due diligence process turns up, Podmore says.
The Crossings itself is sticking to a “no comment” policy. Board chairman Alan Wright told Good Returns the company would not be discussng the issue publicly until after the shareholders have voted.
The Crossings was set up by FMG which put three Marlborough vineyards, Brackenfield, Medway and Willow Flat, together. FMG has since sold out of the group.
Assuming the deal goes ahead, Podmore says the whole process the start of due diligence to the issuing of prospectus should take about three months.
In the past couple of years St Laurence has sorted out a number of other property investments which have gone sour, including the Victoria Park Markets in Auckland.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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