Australian Vintage completes Loxton winery sale

Australian Vintage completes Loxton winery sale

Australian Vintage has said that it will be forced to report a AUD3.1m (US$3.2m) impairment charge in relation to the sale of its Loxton winery in Australia.

A fee for the sale has not been disclosed. But, Australian Vintage said today (19 August) that the AUD3.1m charge is an impairment on "the carrying value" of the winery. The one-off payment will be reported as part of results for the McGuigan winemaker's most recent fiscal year, which ran to the end of June.

News of the charge came as the group said it has completed the sale of the 90,000 tonne capacity winery to The Wine Group. Assets related to Austflavour, which are based on the same site, are included in the deal. But, Australian Vintage said that it has retained the Austflavour business and will rent the Austflavour facilities from The Wine Group until January 2012.

In 2007, India's Indage Vintners, then known as Champagne Indage, agreed a deal to acquire Loxton winery, in southern Australia. However, this deal fell through. Australian Vintage said that it received AUD5.9m in compensation from Indage in its two preceding financial years.