Private equity giant TPG Capital Management has made a $3.1bn (pounds 1.85bn) approach for Australia'sTreasury Wine Estates, a source said, setting up a possible bidding war for the world's second largest winemaker with rival KKR.
A week after KKR and Rhone Capital proposed a A$5.20 a share offer for Treasury, the owner of the Penfolds, Lindemans and Wolf Blass brands said yesterday it had received a second identical offer from a global private equity firm which requested anonymity.
Treasury shares were trading at A$5.255, valuing the company at A$3.4bn (pounds 1.87bn), with investors bidding the stock up 2.4% on the prospect that a takeover battle might ensue. The buyout firm behind the second proposal was TPG, said the source, who had direct knowledge of the matter but could not be identified as the discussions were confidential. Treasury declined to comment further on the second bidder's identity.
Treasury said it would offer the second suitor time to undertake due diligence exercises to progress with its bid, which values the company at A$3.38bn. Last week, KKR and Rhone offered the same amount for Melbourne-based Treasury, spun off from brewer Foster's in 2011, after the target rejected a A$4.70 per share bid from KKR earlier this year.
Treasury said last week it would allow KKR and Rhone access to its books. That in effect ended its previous stance that its best option for the future was an efficiency drive under new chief executive officer Mike Clarke. Reuters