Top Shelf International Holdings Ltd (TSI) has announced that is has entered a binding term sheet for the sale of its plant and equipment at its Campbellfield production facility to Idyll Wine Co Pty Ltd (IDL).
The sale includes all operational production assets at the Campbellfield facility. Its canning and bottling lines, brewhouse and distillery, will all be a part of the $8m cash sale, excluding the Company’s whisky maturation facility at Somerton.
All proceeds will go towards transaction costs and reducing the Company’s debts, such as its outstanding ATO excise liability.
TSI has also agreed to the sale of a small portion of its excess bulk whisky inventory to IDL. Simultaneously, it intends to enter a co-packing arrangement with IDL for the production of its branded products following the completion of the sale.
Completion of the sale is conditional as TSI awaits on the negotiation of long-term documentations, including third-party approvals and new contracts regarding leases.
The Campbellfield transaction follows TSI’s previous $5m sale and leaseback of its farmland and structural improvement assets at its Eden Lassie agave farm back in April 2024.
It also follows TSI’s decision to suspend trading on the ASX in September last year. After receiving both foreign and domestic offers of interest, it announced the company would be exploring potential sale opportunities.