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Scheid Vineyards Plans Stock Offering

May 29, 1997|(Bloomberg News)

Scheid Vineyards Inc., a contract grape grower for California wineries, plans to raise $16.6 million after expenses in an initial public offering of all of its Class A common shares. The Marina del Rey-based firm plans to sell 2 million shares for $9.50 each, its statement filed with the Securities and Exchange Commission stated. The Scheid family will retain control of the firm through its ownership of 4.4 million Class B shares, which carry 5 votes apiece and elect 75% of the board of directors. The Class A shares carry one vote each and elect the remaining 25%, the filing said. Scheid grows chardonnay, merlot, cabernet sauvignon and nine other grape varieties in Monterey and San Benito counties. Scheid Vineyards will use $6 million of the proceeds to repay its short-term debt, the filing said. The rest will go to planting and developing new acreage, expanding the firm's wine business and increasing working capital.

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