EVANS & TATE REJECTS YARRAMAN IN FAVOR OF MCWILLIAM’S WINES

Once again, Evans & Tate has rejected the latest bid from US-based Yarraman on the grounds that it did not present “a sufficiently compelling proposition for Evans & Tate's business or stakeholders.” E&T confirmed to the Australian Stock Exchange on Friday (July 27) that it would not agree to the Yarraman offer which was made earlier last week.

Meanwhile, Australia’s eighth largest winemaker, McWilliam’s Wines, has agreed to help fund a restructuring for E&T. The Margaret River company announced on Friday night it had agreed to a bail-out package proposed by investment group Pendulum Capital that includes McWilliam’s taking a 25% stake in the group. The agreement gives McWilliam’s a chance to enter Western Australia for the first time.

Under the deal, which is subject to shareholder approval, McWilliam's will become the global distributor of Evans & Tate's wines. McWilliam’s is partly owned by E&J Gallo.