SHARES in Australia’s Treasury Wine Estates surged 11 per cent to a record yesterday, valuing the world’s second-largest winemaker at $2.6bn (£1.6bn), following a report that China’s Bright Food Group was considering a bid for the company.
Treasury Wine, with brands including Wolf Blass, Rosemount and Lindemans, was spun off by Foster’s Group in May to its shareholders after the brewer failed with an expansion into wine that resulted in nearly A$3bn in writedowns. Following the split, both companies were seen as potential takeover targets and Foster’s has already rejected a $10bn takeover offer from brewing giant SABMiller.
Bright Food could bid for Treasury Wine’s assets and make good use of its existing distribution network mainly in supermarkets, one analyst said.
City A.M. Reporter