McGuigan Simeon has confirmed it is in talks about what it describes as "a possible transaction".

The Australian wine company confirmed to the Australian Stock Exchange today (20 February) that it is in the early stages of discussions with Nepenthe Group.

"No formal proposal has been agreed and discussions remain incomplete, conditional and confidential," McGuigan Simeon said.

Based in the Adelaide Hills, Nepenthe was created in 1994 by the Tweddell family. The company exports to several markets, including the UK and US.

In August last year, McGuigan reported a net loss of A$11.5m (US$9.1m) for the year to 30 June, after writing off almost A$30m in stocks amid a red wine glut.