CANADA. Vincor International Inc has reaffirmed its decision to reject rival firm Constellation Brands’ takeover bid of C$31 (US$26) per share, which values the Canadian wine company at C$900 million. Constellation has made several unsuccessful overtures to Vincor in recent weeks.
Commenting on the rebuff Vincor Special Committee Chairman Mark Hilson said: “We continue to reject the price of C$31 per share as it is our view that it does not represent fair and full value for our company.
“We commenced a process to explore all possible alternatives to create shareholder value and we intend to see that process through to completion,” he added. “Constellation is welcome to join that process if they can put forward an offer representing full and fair value.”
Vincor, which owns leading wine brands including Inniskillin and Kumala, also reaffirmed that Constellation had earlier verbally presented a price indication of C$36 or higher.
Vincor President and CEO Donald L Triggs said: “Vincor is a strong company with enviable positions in many global wine markets. We are the number-one wine company in Canada, have leading brands in Canada, the US, UK, New Zealand and South Africa, and consistently demonstrate high growth and return on invested capital.”
The Board will respond to shareholders with its recommendation following the receipt and review of a formal offer, Vincor said in a statement.
Vincor trades on the Toronto Stock Exchange and has approximately 33 million common shares outstanding.
About Vincor International
Vincor International Inc is one of the world’s top ten wine companies by revenue. Vincor has wineries in British Columbia, Ontario, Quebec, New Brunswick, California, Washington State, Western Australia and New Zealand, and is one of the largest wine importers, marketers and distributors in the UK. Vincor markets wines produced from grapes grown in the Niagara Peninsula of Ontario, the Okanagan Valley of British Columbia, the Dunnigan Hills of California, the Columbia Valley of Washington State, Western Australia, New Zealand, South Africa and vineyards around the world. Vincor’s premium brands include Inniskillin, Jackson-Triggs, Toasted Head, Goundrey and Kumala, which complement its popular-priced wines such as Entre-Lacs, L’Ambiance, Sola Nero and Notre Vin Maison.
MORE STORIES ON VINCOR
Inniskillin owner Vincor is subject of C$900 million offer from Constellation – 27/09/05
Vincor aims to convert more wine drinkers to Goundrey with rugby sponsorship deal – 18/07/05
Vincor sees strong results as brands fly; buoyed by major strategic acquisitions – 30/06/05
