TWE Successfully Completes Institutional Component of Pro-Rata Offer

Treasury Wine Estates Ltd (ASX:TWE) announced the successful completion of the institutional component of its pro-rata accelerated renounceable entitlement offer on Tuesday, 31 October 2023. The company raised approximately AU$604 million in gross proceeds through this offering.

Institutional Entitlement Offer Highlights

The institutional component of the entitlement offer raised $604 million with an offer price of A$10.80 per new TWE fully paid ordinary share, or "New Share." Approximately 78% of eligible institutional shareholders took up their entitlements, while Asia Pacific-based institutional shareholders displayed strong support, with around 96% participating.

Entitlements not taken up by eligible institutional shareholders and those of ineligible institutional shareholders were sold and cleared in the Institutional shortfall bookbuild at AU$11.50 per New Share, representing a 6.5% premium to the offer price.

The retail component of the entitlement offer opens on Wednesday, 8 November 2023, and retail entitlements can be traded on the market.

Funding the Acquisition of DAOU Vineyards

Proceeds from the entitlement offer will be used to partly fund the acquisition of 100% of DAOU Vineyards, LLC and its associated entities. Settlement for the institutional entitlement offer is scheduled for Monday, 13 November 2023, with the New Shares commencing trading on Tuesday, 14 November 2023.

Shareholders who didn't take up their entitlements will receive AU$0.70 per entitlement sold through the Institutional Bookbuild, with payments expected around Tuesday, 14 November 2023.

TWE's CEO, Tim Ford's Perspective

TWE's Chief Executive Officer, Tim Ford, expressed appreciation for the institutional shareholder support for both the equity raising and the Acquisition of DAOU Vineyards. He anticipates completing the retail component of the entitlement offer and is excited to finalize the acquisition, contributing to the company's luxury-led portfolio premiumisation strategy.

Retail Entitlement Offer Details

The retail entitlement offer is expected to raise around AU$221 million, open from 8 November 2023, and close on 23 November 2023. Eligible retail shareholders in Australia and New Zealand can subscribe for 1 New Share for every 9.45 existing TWE fully paid ordinary shares held as of 3 November 2023. Retail entitlements can be traded on ASX, and eligible shareholders are encouraged to read the Retail Entitlement Offer Booklet for complete details.

Non-eligible shareholders in the United States are not eligible to participate in the Retail Entitlement Offer. TWE's ordinary shares are expected to resume trading on an ex-entitlement basis from market open. For more information, shareholders can contact the TWE Offer Information Line.

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