Foley Family Wines to buy Mt Difficulty Wines

15 November 2017 Foley Family Wines to buy Mt Difficulty Wines Foley Family Wines Limited [NZX: FFW] announces that it has entered into a conditional sale and purchase agreement with Mt Difficulty Wines Limited (MDW) to purchase all of the Mt Difficulty Wines assets and business, including its iconic Central Otago wine brands Mt Difficulty and Roaring Meg and its property interests, winemaking and cellar door facilities, for an aggregate purchase price of approximately $55 million (subject to working capital adjustments). Completion of the transaction agreement is conditional on a number of matters including FFW's shareholder approval, Overseas Investment Office approval, the approval of MDW's shareholders and obtaining key third party consents. These are required to be obtained by various dates, with 30 September 2018 being the final date for satisfaction of all conditions. Subject to FFW's shareholder approval, which is proposed to be sought in the first quarter of 2018, it is anticipated the acquisition will be completed by around 30 June 2018. FFW will need to arrange funding for the transaction, which the Board is confident will be available when needed. FFW is identifying the preferred financing structure for the transaction, in the context of optimising its overall capital structure. It has received positive preliminary indications from its bankers, and will progress this, alongside any other capital raising options identified by the Board. FFW will update the market once these matters have been determined. FFW's chief executive officer Mark Turnbull said "FFW had advised the market earlier in the year that the company was seeking further acquisitions. We are delighted that FFW has been able to conclude the transaction with such an iconic Central Otago wine company." Authorised for public release. For further information please contact: Mark Turnbull CEO, Foley Family Wines Limited PO Box 67, Renwick, 7243, Marlborough Tel: +64 21 714 885 Email: mark@ffw.co.nz End CA:00310300 For:FFW Type:MKTUPDTE Time:2017-11-15 08:30:12