Treasury Wine Estates says no to share offer

0

The September issue of Wine Technology magazine reported the financial woes of Australia’s Treasury Wine Estates — a company with strong links to New Zealand — but the company now says it has called off all discussions on two offers that sought to buy all TWE’s shares at $A5.20 each.

TWE’s board said early in August that it had received an unsolicited, non-binding and conditional proposal from funds managed by Kohlberg Kravis Roberts and Rhone Capital.

Almost a fortnight later the company announced it received another offer, also set at $5.20 a share.

However, TWE’s board and management held discussions with shareholders and were given “clear feedback” that the prices offered undervalued the company.

TWE believes its plans to increase and accelerate consumer marketing investment in the company’s brands; reduce costs significantly; deliver supply-chain savings and efficiencies; strengthen consumer, retailer and distributor relationships and enhance its marketing efforts, will deliver more value.

TWE says it is now apparent to the company that the bidders are not able to support a transaction offer on terms and at a price acceptable to the board and all discussions have ceased.

Chairman Paul Rayner says the board’s focus continues to be to act in the best interests of all shareholders.

TWE has amongst its wine offerings the world-famous Penfolds Grange red and the Matua brand, which carries the ‘claim to fame’ of being the first winery to plant sauvignon blanc in Marlborough. It markets wines from 12 wineries across New Zealand and Australia.

Share.