AUS: Treasury Wine Estates to "engage further" after US$3.2bn takeover proposal
Treasury Wine Estates revealed in May that KKR had made an initial proposal
Treasury Wines Estates (TWE) is to open up its books after receiving an increased AUD3.4bn (US$3.2bn) takeover proposal from two private-equity suitors.
The Australia-based wine maker said today Kohlberg Kravis Roberts & Co (KKR) and Rhone Capital are willing to buy all of its stock for AUD5.20 per share, on condition of "non-exclusive" due diligence. The proposal is AUD0.50 more than an initial KKR proposal revealed earlier this year, and an AUD0.23 improvement on TWE's share price as of Friday's close.
In a statement, TWE said there is “no certainty” that the proposal will result in an offer for the company, however “it is in the interests of its shareholders to engage further with KKR and Rhône”.
The proposal remains subject to several conditions, including:
- Completion of due diligence to KKR’s and Rhone’s satisfaction
- Final approval of KKR’s and Rhone’s investment committees
- Availability of financing
- Unanimous recommendation by the board of TWE
In May, TWE said it had rejected a takeover offer from KKR, saying the “proposal does not reflect the fundamental value of the company”. It was TWE's third M&A-related statement to the Australian Stock Exchange that month following reports linking Pernod Ricard to its US wine assets and also speculation of a similar move by Constellation Brands.
TWE is currently being restructured by its CEO Michael Clarke after enduring a troubled time of late, including a US$145m write-down in the US last year.
At close of trading today, TWE's share price had climbed by 4% to AUD5.15.
To read TWE's official statement, click here.
Global Wine Market: Merger & Acquisitions December 2013
The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global wine market during December 2013....read more
Constellation Brands, Inc. - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and servi...
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
Canadean's "Treasury Wine Estates Limited - Company Capsule" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts, major prod...
- Why consumers don't care about vodka's provenance
- Pernod Ricard's FY Performance by Region, Brand
- Japan follows in Scotch whisky's footsteps
- Brown-Forman's Q1 Performance by Region, Brand
- Pernod Ricard's FY fiscal-2015 - Preview
- Diageo launches glass Bulleit & Cola bottles
- Pernod Ricard "in line" after full-year results
- Pernod Ricard releases social medial guide
- Bruno Mars rum rolls out across US
- Brown-Forman CEO unfazed by FX headwinds
- Global gin insights - market data, product innovation and consumer trends research
- Future growth opportunities for global spirits
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research