Treasury Wine Estates Said To Receive Formal Offers From KKR, TPGSeptember 26, 2014
Two private equity firms launched formal bids for Treasury Wine Estates (TWE) earlier today, according to Australian press reports. The two firms—KKR and TPG—are both said to be offering around A$5.20 ($4.57) per share for TWE, around 5% more than the A$4.92 ($4.32) price TWE shares closed at today on the Australian Securities Exchange.
Nearly six months ago, KKR made a play for TWE, offering $A4.70 ($4.13) a share, but that offer was rejected by Treasury’s board. Last month, TWE reported an after-tax loss of A$100.9 million ($88.6m) for its recently completed fiscal year, as its global volume fell 6.4% to 30 million cases. Still, as KKR and TPG have shown, there’s plenty of interest in the troubled winemaker, largely because of its Penfolds brand and what’s thought to be its huge upside in the Asian market.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.