Kohlberg Kravis Roberts and Rhône Capital have revised their proposal to acquire Treasury Wine Estates (ASX: TWE), upping the share price offered to AU$5.20 ($4.85), an increase of AU$0.50 ($0.47) from their April offer. The new price also represents a premium of 40.9% to TWE's closing share price on April 15. Per the revised proposal, KKR and Rhône will be able to conduct non-exclusive due diligence.
TWE is the world's largest pure-play listed wine company with over 80 brands including Castello di Gabbiano, Chateau St. Jean, Etude Wines and Stags' Leap Winery. With 11,000 hectares of vineyards, sales of 32 million cases of wine annually and revenues of about AU$1.7 billion ($1.6 billion), TWE employs more than 3,500 winemakers, viticulturists, sales, distribution and support staff across 16 countries. The current takeover negotiations first began several months ago after TWE shares dropped during 2013 due to various fiscal problems, including overpayments for previous acquisitions and slowing sales for cheaper wines.