Australia’s Treasury Wine Rises As Billionaire Goudet Buys Stake

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Summary:

Treasury Wine Estates Ltd.'s shares jumped about 7% in Sydney, the most since September 2024, after European billionaire Olivier Goudet emerged as a shareholder, offering a rare boost to the troubled winemaker.

Goudet, through investment vehicle Platin SARL, has taken a 5% stake in the Penfolds owner, according to an exchange filing on Wednesday. The Australian firm has a market capitalization of about A$4.3 billion ($2.8 billion). Treasury shares were up 6% at A$5.33 as of 1:40 p.m. in Sydney.

The investment comes after Treasury's shares slumped to the lowest level in more than a decade earlier this month, as the firm grapples with flagging demand in key markets including the US and China. The vintner has canceled a A$200 million stock buyback and said it's reviewing planned capital investments.

The company last week announced asset sales and said it would pursue A$100 million in annual cost cuts over the next two to three years under new Chief Executive Officer Sam Fischer.

Treasury has warned of weakness in both the US and China, compounded by a distributor transition in California and Beijing's crackdown on boozy government banquets. It also announced a near A$690 million write-down of its US business, underscoring the challenges facing the winemaker even as a high-profile investor steps in.

Goudet is a co-founder of private investment firm JAB Holdings BV, which controls or holds stakes in global consumer brands including Dr Pepper, Krispy Kreme and Panera Brands. He stepped down as JAB's CEO after 12 years and became senior investment advisor to the firm early last year.

Source: Bloomberg Europe

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Australia’s Treasury Wine Rises As Billionaire Goudet Buys Stake

Source: Bloomberg Europe

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