KKR Improves Offer for Treasury Wine of Australia

KKR Improves Offer for Treasury Wine of Australia

KKR & Co. and Rhone Group LLC in unison has made a better takeover bid offer of 3.38 billion Australian dollar (US$3.15 billion) for Treasury Wine Estates Ltd. The new offer has caught the interest of the vintner as it struggles with falling sales in the U. S. and tough competition from rivals at home.

Initially in April KKR had approached the Australian wine maker with an offer of A$4.70 a share which did not interest the seller. Now the offer comes jointly from the U. S. private-equity firms at an offer of A$5.20 for a Treasury Wine share which is 10.6% more than the initial offer.

The Australian company makes wines that range from Beringer to Penfolds, said it has given KKR and Rhone the right to carry out suitable diligence on a nonexclusive basis. A spokesman of KKR refused to talk about the size of contribution that Rhone was making for the deal.

The bid is however being led by KKR. The amount of imports of wine to Australia have also increased in the last few years, mainly so from New Zealand. The county produces white varietals like Sauvignon Blanc which is one of those that have progressively gained popularity due to its quality and value. Meanwhile, in Australia when Treasury Wine attempted to raise prices just before the Christmas holidays the action backfired and scared away consumers.


Popular Stories

Dr. Mark Wainberg dies after struggling in waters off Bal Harbour, Fla.

Famed microbiologist Dr. Mark Wainberg, who played... Read More

Microsoft patches NSA’s leaked Windows hacks

Microsoft Corp. has claimed that it has already... Read More

Las Vegas to offer clean needles through vending machines

Struggling to fight back soaring heroin and HIV... Read More

Nintendo announces new games for Switch

During the most recent Nintendo Direct, the mobile... Read More

Decomposed bat found inside package of salad: officials confirm

Fresh Express is recalling a limited number of... Read More

Future Google Pixel phones may feature curved screens

Tech giant Google Inc. has plans to introduce a... Read More