McGuigan Simeon has raised the finance needed to fund its acquisition of Australian wine producer Nepenthe Group.

The company said today (28 February) that it has sold A$25m (US$19.7m) of its shares as part of a capital raising in domestic and international capital markets.

McGuigan Simeon said the purchase of Nepenthe would immediately boost its earnings per share. CEO Dane Hudson said: "We are very pleased with the success of the capital raising which was well covered and received strong support from our major shareholders."

Yesterday, McGuigan Simeon blamed "bitter competition" in the Australian wine industry as it reported plunging first-half profits.

McGuigan Simeon saw operating profit slump by 62% year-on-year to A$4.9m for the six months to 31 December. Moreover, the company admitted there are "operational and market risks" that could hit its outlook.