Despite the crashing stock market and the global recession couple with liquidity crunch, India's largest wine producer, Champagne Indage ( Part of Rakesh Jhunjhunwala holding) is reported to have made a bid to buy Norfolk, UK- based winery Broadland Wineries, with a view to expand further in UK.
The group has made a formal offer through its UK subsidiary Indage UK. The deal has been accepted in principle by the seller company's shareholders and negotiations are at an advanced stage, according to a report.
Earlier this year, Indage had bought UK-based wine supplier, Darlington Wines in order to help strengthening its overseas presence. At the time, Indage Champagne had said it planned to acquire wine businesses in the UK, South Africa and South Australia.
Broadland wineries produces fruit wine and packages wines from all over the world into bottles and bag-in-box for wine growers, importers and merchants. It was in financial trouble a couple of years ago but used the services of a turnaround specialist in 2006. The company was brought back to profitability last year with a Top-line of about $30 million.
Ranjit Chougule, MD of Champagne Indage could not be contacted. However, McTear Williams & Wood, the company overseeing the sale, has confirmed that the deal should complete by mid-December.
The Loxton Indage deal, in the meanwhile has been kept on hold, as confirmed by both sides and reported earlier by delWine.
As per Sep 08 shareholding pattern, Rakesh Jhunjhunwala is holding 500000 shares of Champagne Indage