The New Zealand Wine Company

NZWC UPDATE

An update is being provided by The New Zealand Wine Company Limited (NZWC) following on from the release of the December 2011 Half Year Earnings Report on 2 March 2012, as follows:
 
1)       2012 Harvest
2012 Marlborough harvest yields were lower than expected due to the impacts from the cool and overcast weather conditions during flowering. NZWC harvested 1,685 tonnes of grapes which was 30% down on our initial 2012 harvest forecast. In 2011 NZWC harvested 2,808 tonnes of grapes.
 
The quality of grapes harvested recently has been excellent and our winemakers are looking forward to making a range of exceptional quality 2012 wines.
 
2)       Capital Restructuring
In December 2011 Grant Samuel was appointed to advise NZWC on Capital Restructuring targeted at satisfying an agreement reached with the ANZ National Bank in December 2011 to raise a minimum of $5m prior to 30 June 2012 and to reduce Bank debt by a minimum of $5m.
 
Grant Samuel identified and pursued interest from a number of trade investors and NZWC is currently exploring a Proposal targeted at merging NZWC with the Foley Family Wines New Zealand wine business. In the event that the two-way due diligence process is satisfactorily completed then an Extraordinary General Meeting of Shareholders would be called to formally consider the Proposal.
 
A further announcement will be made in due course.
 
 
Authorised for public release.
 
 
For further information please contact:
 
Alton Jamieson
Chairman
The New Zealand Wine Company Limited
PO Box 67, Renwick, Marlborough
Telephone number: 021 964 995
E Mail address: alton_jamieson@xtra.co.nz
Web site address: www.nzwineco.co.nz