US fund buys $25m of Treasury shares

US fund manager Wellington Management has given struggling wine company Treasury Wine Estates a cash injection by splashing out AU$25m on shares in the company.

As reported by The Sydney Morning Herald, Boston-based Wellington Management snapped up the shares late last week while other investors were busy bailing out on TWE as share prices in the company slid 20%.

The drop in share prices came after Treasury revealed a AU$40 million (£21.2m) profit downgrade as it came out of a trading halt.

Wellington spent AU$5.4m on Treasury shares last Thursday and a further AU$19.8 million on Friday in order to lift its holding further.

The company – one of the largest private, independent investment management companies in the world – is now one of Treasury’s largest shareholders, with a 5.73% stake, according to the Australian Securities Exchange (ASX).

The news comes as global fund manager and Treasury Wine Estates shareholder, BlackRock Group, dipped below the 5% mark after lightening its holding in TWE last week.

The latest hangover for Treasury is being blamed in a slowdown in demand for its wines in China, which some analysts estimate may account for as much as 20% of the company’s Asian sales volume.

Treasury, which owns over 80 wine brands, including Penfolds, Wolf Blass and Wynns Coonawarra, reported a 53% profit slump in its full-year results last August, which led in part to the stepping down of Treasury’s CEO, David Dearie last September.

Last July, TWE was forced to destroy six million bottles of “old and aged commercial stock” worth £21.4m in the US due to declining sales and falling shipments.

The company is facing legal action from Australian shareholders over the incident.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Sale & Operations Manager

Marussia Beverages
Marylebone, London, UK

PRESTIGE ACCOUNT MANAGER – EUROPE

Jackson Family Wines
London, UK

Sales Executive

MAISON SASSY
London, GB

Head of Supplier Management - Group

Matthew Clark
London and Bristol, UK

Brand Manager – Whisky

ATOM Brands
Tunbridge Wells, UK

Brand Manager - Gin

ATOM Brands
Tunbridge Wells, UK

International Business Development Assistant

iDealwine
Paris, France with frequent trips to London office

Events Assistant

Speciality Drinks
London, UK

Sales Administrator

Les Caves de Pyrène
Guildford, UK

Pink Rosé Festival

Cannes,France
7th Feb 2018

VinoVision Paris

Paris,France
12th Feb 2018

Vinisud

Montpellier,France
18th Feb 2018
Click to view more

Champagne Masters 2017

The only Champagne blind tasting in the UK, the competition will reward the best wines in the following categories:

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

Click to view more