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Formal bids made for Treasury

Treasury Wine Estates (TWE) has received formal takeover offers from two private equity firms, according to the Australian Financial Review.

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US firm Kohlberg Kravis Roberts (KKR) and TPG Capital, a private investment firm based in Texas, are both said to be offering around AU$5.20 ($4.57) per share.

KKR previously submitted a bid in May at $4.70 a share which was rejected prompting the firm to up its bid to $5.20, with TPG then stepping into the ring with a counter offer of the same value.

TWE’s shares are currently valued at A$4.92 per share on the Australian Securities Exchange.

An agreement on this basis would represent a deal worth AU$3.4bn (£1.88bn; $3.17bn).

Treasury Wine Estates, which is behind brands including Penfolds, Wolf Blass and other leading Australian wine brands, has been struggling for sometime and recently announced an impairment of over AU$200 million from its assets.

While the offer was announced in August, formal offers from both parties have now been accepted having completed “due diligence” requirements.

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