Delegat's ups offer for Oyster Bay

Winemaker Delegat's Group has lifted its takeover tilt for the 45% of Oyster Bay Marlborough Vineyards it does not already own.

Delegat's raised its offer by 23 cents to $2.08 in cash, or one Delegat's share for each share of Oyster Bay, valuing the target company at $18.7 million.

That is a 12% more than Friday's share price of $1.85, the same premium it made in the original offer of $1.80 a share when Oyster Bay was at $1.60.

The Oyster Bay brand is Delegat's flagship export wine.

Oyster Bay's shares were unchanged at $1.85 on Friday, as was Delegat's at $1.80.

The grape grower commissioned a report from First NZ Capital on strategic options this year after low prices for grapes put the company on track for a potential breach of its banking covenants.

The breaches were later waived, and Oyster Bay subsequently reported a net loss of $13.8 million, including an $841,000 operational loss and asset write-downs.

Grant Samuel is to provide an independent adviser's report on the offer.