Viva Wine Group receives takeover bid from shareholder consortium

Viva Wine Group has received a takeover connection from Riesling Ventures, a conveyance acceptable up by the vino group's 3 largest shareholders, which includes the company's CEO.

Riesling Ventures is offering Skr38.5 ($3.96) per stock successful cash.

The consortium is comprised of Late Harvest Wine Holding 1971, owned by Viva Wine Group's CEO Emil Sallnäs; Vin & Vind, owned by elder advisor Björn Wittmark and family; and Legendum Capital, owned by committee subordinate and concern improvement manager John Wistedt.

On LinkedIn, CEO Sallnäs said the company's founders were creating "a bid to spell backmost to backstage ownership".

The offer, which values the Stockholm-listed institution astatine astir Skr3.45bn, is simply a 38% premium to Viva Wine Group's closing terms connected 26 June, the consortium said successful its connection contiguous (29 June).

In a abstracted statement, Viva Wine Group said it has seen its nett income emergence much than 60% to Skr5.5bn since it listed connected the Nasdaq First North Premier Growth Market successful 2021.

At the extremity of past year, the radical transitioned to Nasdaq Stockholm Main Market, and claimed to person booked "its highest first-quarter nett income to date".

Operating margins successful the 4th nevertheless declined, contempt net rising successful implicit terms, due, successful part, to the "different borderline profiles" of companies it has acquired. Its astir caller acquisition was of the Norweigian non-alcoholic drinks importer Alpha Brands

The radical besides said it had been facing "challenges relating to the shareholder base", with "larger organization owners... continuously divesting smaller blocks of their holdings".

Since the radical listed successful 2021, its stock terms has dropped by astir 40% and shareholder numbers person dropped to astir 6,4000 arsenic if May, and the stock liquidity "has been limited", Viva Wine Group said, "partly arsenic a effect of a debased escaped float, since a ample information of the stock superior is held by the company's larger owners".

The takeover bid comes arsenic the Sweden-based radical says it faces "weaker improvement successful the e-commerce market", "a gradual diminution successful vino consumption", amid different conditions.

In Riesling Ventures' statement, Viva Wine Group's CEO Emil Sallnäs, said: "Despite the company's operational advancement since the listing, we judge that the listing situation does not afloat alteration the company's imaginable nor is the champion level for the company's adjacent signifier of development.

"Our appraisal is that this adjacent improvement signifier tin champion beryllium realised successful a backstage setting, with greater continuity and state to proceed processing the company, portion our nationalist connection provides the shareholders with an charismatic premium and accidental for liquidity."