Wine scheme merges investment groups
Palandri Wines is to merge its two investment companies as it prepares to raise another $58 million capital by the end of the year under a seconde prospectus and propose a stock market listing.
Palandri Wines is to merge its two investment companies as it prepares to raise another $58 million capital by the end of the year under a seconde prospectus and propose a stock market listing.
Project management company Margaret River Wine Production and Palandri Production, owners of the winery and brand, will merge in a bid to simplify and reduce costs before Palandri proposes a listing to its shareholders next year.
The names of the groups have also just been changed. Margaret River Wine Production was formally known as International Wine Marketing and Management while Palandri Production was formally known as Margaret River Wine Production.
Palandri Wines executive director Mark Norton says Deloittes, one of the company’s adviser groups, is currently working on the merger proposal and plan to lodge documents with the Supreme Court in December.
He says a shareholder’s meeting is then due to be held next February and, if accepted, the listing will take place by early next financial year.
Palandri is also in the process of acquiring further vineyards, in order to increase supply and growth, both domestic and global.
The purchase of the Baldivis Estate for about 2.5 million from the Kailis family took place earlier this year. Norton says there are several other acquisitions presently under negotiation within the Margaret River area.
For the next capital raising, Palandri is looking to broaden its investor base. Norton says the company is approaching “key industry players to recommend the project to their client base”.
He says the response has been encouraging and believes financial planners are comfortable with referring clients to invest in Palandri Wines, as it is “not just tax driven, but a real business in a favourable sector.”
Palandri is looking to raise another $200 million capital over the next three to four years.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
