Wine founder quits in power takeover
High-profile winemaker Peter Yealands has parted ways with the company he founded, as electricity network company Marlborough Lines takes full ownership of Yealands Wine Group.
Companies Office documents show that on July 2, Marlborough Lines acquired the last 14 per cent of Yealands Wine it did not already own from Peter Yealands.
On the same day, he quit as a director of Yealands Wine Group, which he founded in 2002 and built into a company with turnover that reached $100 million in 2017.
As a result of inquiries from Stuff, Christchurch-based QC Jonathan Eaton, representing Yealands Wine, was granted a wide-ranging injunction from the High Court, preventing the publication of information relating to the company.
‘‘The matters are delicate and sensitive, with potential widespread harm that could be caused if not managed properly,’’ Eaton told Stuff as he put the company on notice that he was seeking suppression orders.
It is not known whether Peter Yealands’ sale and resignation are in any way linked to the matters Eaton was referring to.
Peter Yealands refused to comment on his share sale or resignation. ‘‘No comment. See you later,’’ he said in a brief telephone conversation.
Marlborough Lines chairman David Dew said the purchase of the remaining shares was part of a plan dating back to its original 2015 investment in the wine company. Peter Yealands left with the company’s best wishes, Dew said.
‘‘It was always intended that we’d be the buyer of his shares,’’ Dew said, adding that Yealands, aged 70, wanted to retire but would still play a role.
‘‘Peter’s a very integral part of Yealands, so we want to make the best use of him, possibly in sort of what we’d call an ‘ambassadorial role’.’’
The terms of Peter Yealands’ exit from the company were being kept private at his request, Dew said, but would eventually be disclosed. ‘‘It was subject to a confidentiality requirement, but obviously he [Yealands] was paid a fair value for his shares.’’
Based on previous transactions, the shares bought this week would have been valued at $16.7m. However, Dew said the transaction ‘‘took into account current value for assets’’.
During 2017, Yealands Wine Group obtained a valuation which saw the paper value of the investment increase by $70m. Marlborough Lines paid $89m for 80 per cent of the company in 2015.
At the time, Kaiko¯ura MP Stuart Smith questioned whether an electricity lines network had the skills to run a wine company.
Headquartered in Blenheim, Marlborough Lines is owned by a trust on behalf of the community. It has received more than $9m in dividends from Yealands Wine Group since 2015.
According to Dew, the dividends allowed Marlborough Lines to increase discounts and payments to consumers, which would hit $200 per household this year.
But since the 2015 investment, Marlborough Lines has invested an additional $10m cash, even before buying out Peter Yealands. This included buying out former chief executive Jason Judkins and adding capital to help purchase another vineyard.
Separately, Yealands Wine Group has purchased another vineyard from a company controlled by Peter Yealands, for a figure believed to be $4m.