Foster's: Treasury Wine Estates stays
Well-known wine manufacturer Foster's Group Limited (ASX: FGL) rejected an offer from an international private equity firm to buy 100 percent of the wine assets of Treasury Wine Estates.
In a media statement, the board of directors disclosed the $2.3 billion to $2.7 billion cash buyout to be a non-binding proposal. The board considered its planned demerger as most beneficial for its shareholders.
The board also considered the offer's high level of conditionality and requirement for exclusivity to reduce the value and certainty of the proposal. “However, the Board will continue to consider any proposal that is in the best interests of shareholders.”
Treasury Wine Estates is a unique international premium wine business with a leading international portfolio which includes “ iconic brands such as Beringer, Chateau St. Jean, Lindemans, Wolf Blass, Penfolds, Rosemount, Wynns Coonawarrra Estate, Stags’ Leap Winery, Matua Valley, Etude, Castello di Gabbiano, Australia’s Seppelt, Coldstream Hills, and Devil’s Lair.”
The Estate boasts of “over 12,000 hectares of vineyards” and “sales totalling over 35 million cases of wine annually.” Its revenues of over AU$2 billion has made it possible to employ “over 4,000 winemakers, viticulturists, sales, distribution and support staff across 12 countries.”