The battle for Treasury Wine Estates, the owner of Penfolds, Rosemount and Lindemans, has escalated, with the company revealing it has received a second takeover proposal from a global private-equity investor.
The company advised the stock exchange this morning the company behind the second offer to acquire all of the shares of TWE at a price of $5.20 cash per share had asked that “its identity remain confidential”.
“The board of TWE has concluded that it is in the interests of its shareholders to engage further with this private-equity investor,” it said.
It follows an upgraded offer one week ago from Kohlberg Kravis Roberts & Co LP (“KKR”) and Rhône Capital LLC (“Rhône”).
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KKR and Rhone made a bid of $5.20, up from an original offer in mid-April of $4.70.
TWE said both camps would be allowed to conduct non-exclusive due diligence.
“The board of TWE reiterates that there is no certainty that any proposal will result in an offer for the company.
“As previously stated, if an offer does result, the board will assess whether it delivers a value proposition that is superior to the expected benefits from management’s renewed strategic plans.”
Shares in Treasury Wine opened trade today at $5.13 and rose to $5.25 in early trade.
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