Yealands Estate sold to electricity network

Peter Yealands has sold his remaining shares in Yealands Estate, the New Zealand winery he founded in 2002, to electricity supplier Marlborough Lines for an undisclosed sum.

Peter Yealands has sold his remaining shares in the wine company he founded in 2002

As reported by Stuff.co.nz, on 2 July Marlborough Lines acquired the remaining 14% of the Yealands Wine Group it did not already own from Peter Yealands.

The same day Yealands resigned as a director of the Yealands Wine Group, which had a turnover of NZ$100 million last year.

David Dew, chairman of Marlborough Lines, told Stuff.co.nz that the purchase of the remaining shares was part of a long term plan to own the wine estate outright.

Babydoll sheep at Yealands Estate in Marlborough

Dew said there was a “gentleman’s arrangement” between Yealands and Marlborough Lines that if and when Peter wanted to sell up, that the electricity firm would be the first to be offered the remaining shares.

“There was a shareholders’ agreement that basically said that if Peter wanted to leave, the shares had to be offered to us,” Dew told Stuff.co.nz.

He also revealed that 70-yer-old Yealands will continue to be involved in the company but is planning on retiring soon.

“He’s still going to be available to work with us on assignments. That’s part of the arrangements with him. Peter’s a very integral part of Yealands, so we want to make the best use of him, possibly in an ambassadorial role,” Dew said.

Dew also told Stuff.co.nz that Peter was paid a “fair value” for his remaining shares in the Yealands Wine Group.

According to the Marlborough Lines 2017 annual report, the equity in Yealands Wine Group held by Peter Yealands was worth over NZ$27m.

Marlborough Lines paid NZ$89m for 80% of Yealands Wine Group in July 2015. The company has received over NZ$9m in dividends from Yealands since its first investment.

Peter Yealands founded Yealands Estate in 2002 when he acquired farmland on the Seaview Peninsula and began developing a vineyard there. Six years later he opened a 10,000-tonne winery at the estate, which opened on 8 August 2008.

Yealands has been a regular fixture on the National Business Review rich list, with an estimated fortune last year of $120m.