Treasury Wine Estates receives fresh takeover bid
Australian winemaker Treasury Wine Estates (TWE) has received a second takeover offer from an unnamed private equity firm. The new offer amounts to $5.55 a share.
The offer worth £1.88bn comes shortly after American private equity firm KKR, in a combined effort with Rhone Group, renewed its efforts to buy the world's largest listed winemaker.
KKR raised its offer for the Australian owner of brands such as Wolf Blass and Lindeman's from $4.70 a share to $5.20 a share. TWE is currently undergoing restructuring and is cutting 175 job cuts.
"The board of TWE has concluded that it is in the interests of its shareholders to engage further with this private equity investor," TWE said this morning.
Last year, the group was obliged to destroy £18.8m of unsellable wine thanks to poor sales in the US.
Furthermore, the group has taken a hit from worse-than-expected sales in China and falling volumes in Australia.