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Treasury Wine Estates ‘Eyes Three-Way Split’

By Tuesday 9 February 2021April 21st, 2021No Comments

Treasury Wine Estates is considering a split of its global operations into three separate businesses, according to media speculation.

According to The Australian, the three-way demerger could result in separate businesses – a stand-alone Penfolds business, an America division and a more commercially-focused wine company.

TWE said in a statement to the ASX, “As announced at its AGM on 5 November 2020, TWE reiterates that it has formally paused work on a potential demerger of its Penfolds brand, and further that it is not currently considering a demerger of any brands/businesses within its portfolio.

“As also announced on 5 November 2020, TWE is assessing internal operating models to deliver long term value through a separate focus across its brand portfolios.

“These assessments remain ongoing and TWE has no further announcements to make at this stage.”

Former CEO Michael Clarke first started talking about a demerger of Penfolds in 2020, but when Covid-19 came along TWE said it was on hold.

“What has become clear is that there is value to be created out of separate focus between Penfolds and the rest of our portfolio,” CEO Tim Ford told The Australian last year.

“However, from a timeframe point of view we are focusing… just to make sure we work through the pandemic period and recover the business to the point we want to.”

The company will announce its interim F21 results on Wednesday 17 February which is also expected to include an update on the restructure of the business.

TWE shares reached a high of $19.17 on 20 September 2019 but have since crashed to $10.

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