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KKR uncorks new offer to buy Australian wine giant Treasury

August 5, 2014

JANE WARDELL



AUSTRALIA'S Treasury Wine Estates is opening its books to Kohlberg Kravis Roberts after the private equity giant hiked its takeover offer to $3.15bn (2.34bn), increasing the chance of a bidding war for the world's second-largest winemaker.


Treasury, which rejected a $2.9bn unsolicited bid from KKR in April, said the 10.6 per cent rise in the offer price meant it was now "in the interests of shareholders to engage further."


Asia's growing appetite for wine, the value of Treasury's Penfolds label and ongoing restructuring are helping boost perceptions of the company's prospects after profits slumped 38 per cent in the six months to February.


China'sBright Food Group, France'sPernod Ricard and the world's biggest wine maker, USbased Constellation Brands, have all been mooted as potential buyers.


Treasury, which also owns the Wolfblass and Beringer brands, stressed it was providing KKR and new bidding partner Rhone Capital with "non-exclusive" access to its books for due diligence.


Reuters


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Source: City A.M. (UK)


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