Wine deal turns sour
The volatile markets have claimed another transaction victim, with the first ever sale of an Australian winery to Indian interests turning sour after India’s most prominent wine-maker failed to secure funding for the purchase.
The proposed $60 million sale of the Loxton Winery in South Australia to Indage, a company founded Shamrao Chougule, the creator of the so-called 'Bombay bubbly', had been flagged as long ago as March.
The sale by Australian Vintage had originally been due to complete in September but was delayed by regulatory hurdles. It was then to be settled by the end of this month but the company says market conditions mean alternative funding needs to be sought.
Australian Vintage, chaired by former Macquarie chairman David Clarke, has been trying to sell the winery – one of the top five by volume in the country – for the past 18 months.
It says Indage still hopes to go through with the transaction, and has paid a non-refundable deposit of $3 million. Australian Vintage had estimated a net profit of between $12 and $16 million from the sale.
The Australian Vintage board also includes former NSW Premier Nick Greiner, Ferrier Hodgson founding partner Ian Ferrier, and wine guru Brian McGuigan.