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Treasury Wine Estates may delay AGM due to possible takeover

Published:  01 September, 2014

Treasury Wine Estates announced that it would most likely be postponing its Annual General Meeting (AGM) that is scheduled to be held on 30 October, 2014 to a later date so shareholders could vote the same day as the AGM to potentially consider a possible takeover.

Treasury Wine Estates announced that it would most likely be postponing its Annual General Meeting (AGM) that is scheduled to be held on 30 October, 2014 to a later date so shareholders could potentially consider a possible acquisition proposal the same day as the AGM.

The announcement which came on Friday in a statement to the Australian Exchange said: "As previously announced, TWE is currently engaged in discussions with two private equity investor groups concerning acquisition proposals which may proceed by way of a scheme of arrangement. TWE's directors consider that, if possible, it would be preferable for the Company and its shareholders for any scheme of arrangement to be considered on the same day as the Company's 2014 AGM, in order to reduce costs and increase convenience for shareholders."

If a potential binding agreement can be reached with one of the private equity firms it is likely that the AGM will need to be held after the schedule 30 October 2014 date.

According to the statement filed: "TWE will make a further announcement in relation to the date for the AGM in due course."

The company reiterates that despite the current bidding war for TWE no proposal is final and there is no certainty that any proposal will result in an offer.

On August 4, 2014 TWE issued a statement that Kohlberg Kravis Roberts & Co (KKR) and Rhône Capital had made a bid for the company.  KKR made an initial offer on April 16 to buy TWE at AUD$4.70.  Then in August, with the enlisted financial backing of Rhône Capital, the bid was increased to AUD$5.20. The following week on August 11, 2014, a confidential match cash offer for TWE was made.  It has been reported by the financial press reported TPG Capital is the unidentified bidder.

TWE also made news last month following the release of its year-end financial results , posting a new loss of AUD$100 million for 2014.

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