Shares in Treasury Wine soared nearly 18 per cent to trade at A$4.8 apiece after the company announced its decision. KKR’s offer valued the business at A$4.7 per share, which represents a premium of 15 per cent to Monday’s closing price of A$4.07.
Earlier this year Treasury Wine hired former Kraft Foods and Coca-Cola executive Michael Clarke as its new CEO, looking for a turnaround following a decline in its share price.
Treasury Wine also unveiled plans to reduce its staff by five per cent to cut costs.
Treasury Wine said, “The board has considered the KKR proposal in the context of these renewed plans and concluded that the proposal does not reflect the fundamental value of the company.”
Meanwhile, KKR is reportedly planning to join forces with a Japanese state-backed investment fund to invest alongside each other.
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