AUSTRALIA: Xanadu sells off assets for A$26.16m
Xanadu Wines Limited, the troubled Western Australian ASX-listed company, has agreed, subject to shareholder approval, to sell its Margaret River winery, cellar door complex, restaurant, brand name and select wine stocks.
The sale for A$26.16m was made to interests associated with Doug Rathbone, the managing director of agricultural chemical manufacturer Nufarm.
The Rathbone family wine interests include Yering Station, Mount Langhi Ghiran and Parker Wines in Victoria and South Australia.
Established in 1977, Xanadu listed on the ASX in 2001 but lost some A$32m of the A$55m it raised over 5 years in negative operating cash flow.
Its shares peaked at A$0.42 in September 2002 but slumped to A$0.025 before trading was halted yesterday.
The move by Xanadu comes only a few of months after it sold its South Australian assets for US$7m. That sale included its Normans, NXG and Jindawarra brands to Cockatoo Ridge Wines for A$7m. The company said the sale of the South Australian assets and the Jindawarra brand was A$7.5m below book value.
This most recent sale, while allowing Xanadu to repay its debts, will leave it with only the smallish wine brand, Jindawarra, 1.5m litres of bulk wine and some residual cash. However, the company today insisted it still had a future.
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