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News
KKR raises takeover bid for Treasury
US firm Kohlberg Kravis Roberts (KKR) has raised its takeover bid offer for Treasury Wine Estates by 10%.
The US equity group has joined forces with a European partner called Rhone Capital and are now offering AU$5.20 a share in the troubled Australian wine group.
KKR’s first takeover bid back in May was rejected by Treasury’s board but this time, reports The Australian Broadcasting Corporation, the tender has “pricked” its interest and it has issued a statement “urging” shareholders not to dismiss it.
The statement said: “The board of TWE, together with its advisers, has concluded, based on the revised proposal, that it is in the interests of its shareholders to engage further with KKR and Rhone.”
The owner of Penfolds, Wolf Blass and other leading Australian brands has been struggling for a while now and recently announced an impairment of over AU$200 million from its assets.
New CEO, Michael Clarke, has been trying to turn the group’s fortunes round since his appointment in April; including cutting jobs – 5% of the workforce – and even offering a wine fridge with every purchase of six bottles of Penfolds.
Penfolds recently teamed up with French retailer Nicolas in an effort to boost its distribution in France.