By James Atkinson

Treasury Wine Estates (TWE) this morning announced the termination of its potential transaction discussions with two separate bidders interested in acquiring the business for $5.20 a share.

In a statement to the ASX, TWE today said it had held discussions over the past month with shareholders, holding in aggregate about 50 per cent of its shares, about the offers from Kohlberg Kravis Roberts & Co and Rhone Capital, and TPG.

“These discussions provided a forum for these shareholders to express a view on the proposals, with clear feedback from almost every one of these shareholders indicating that they believed a price of $5.20 per share undervalued the company,” TWE said.

The company said this view was driven by the value that the major shareholders believed TWE could deliver over time by executing its own strategic plans.

“Throughout the due diligence process the private equity bidders indicated support for management’s strategic plans and roadmap. They also did not identify any major concerns with the business. However, it is now apparent to the company that the bidders are not able to support a transaction on terms and at a price acceptable to the Board.”

“Accordingly all discussions have now ceased.”

TWE chairman Paul Rayner said the company’s year-to-date performance was tracking ahead of plan and shareholders will be updated on its strategic roadmap and performance at its Annual General Meeting (date to be advised).

The Shout Team

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