French winemaker and distributor Laroche is poised to get the go-ahead from the Paris stock market regulator to raise its capital by EUR4m (US$4.8m).
The move, designed to restructure debt, will see the company's major shareholder, Michel Laroche dilute his stake from 61% to 52%. The plans are to raise EUR3m immediately and EUR1m a year from now.
Over half of Laroche's annual turnover - which stood at EUR27m for the 2004-2005 financial year - is generated by sales of Chablis. However, having invested heavily in both Chile and South Africa, Laroche is aiming to produce one quarter of its wines in the New World in the next five years.