The International Wine Investment Fund, which is still having difficulty persuading some of its participant members that it should continue to exist, will invest A$8-9 million in a stake of around 9% in the publicly listed Evans & Tate Ltd in a placement and rights issue. The IWIF has agreed to take a placement of 7.5 million shares at $1.05 per share, cum rights and dividend and will also participate in the company’s 1 for 10 rights issue at $1.04 per share, anticipated in October 2003. On 24 July the unitholders of the IWIF voted 65% in favour to continue the fund, a decision that appears to be under constant pressure from a faction that includes convicted inside trader Rene Rivkin. Following the sale of its stake in BRL Hardy, the fund has looked to find its next success story. It views Evans & Tate as the company most likely to create a BRL-like return. Observers of the fund have suggested that its management is also keen to create its own major wine business. Since 1999 Evans & Tate has become one of the country’s top ten producers by volume and its 12th by value. By capitalisation, it is now (including the IWIF and Fosters Group) the 6th largest wine group in Australia listed on the ASX. Evans & Tate is also raising additional funding of around A$10 million through a placement to Grape Expectations Enterprises Pty Ltd of 2.5 million shares (a company owned and controlled by Franklin Tate, Evans & Tate’s chairman and chief executive) and a 1 for 10 renounceable rights issue.
