KKR and Rhône Capital have teamed up and offered A$3.4 billion for Australia's Treasury Wine Estates, an offer that Treasury may find difficult to refuse.
This is the second takeover bid in four months by KKR for the world's largest listed winemaker, higher than the initial bid of A$3.1 billion.
Treasury has vineyards in Australia and the US, and owns several well-known brands, such as Penfolds, Lindemans and Rosemount Estate. The winemaker has had a difficult year, following a A$160-million write-down of its US business, and is in the process of cutting costs and investing more money in marketing.
Treasury issued a statement saying that the board decided that 'based on the revised proposal, that it is in the interests of its shareholders to engage further with KKR and Rhône'. If the revised proposal results in a firm offer, the company has said that the board will assess whether it would deliver more value than the company's current turnaround plan.
Treasury also confirmed that it would allow KKR and Rhône to engage in non-exclusive due diligence, subject to the conclusion of a confidentiality agreement.
© 2014 European Supermarket Magazine by Nicole Gernon
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