Australia's Treasury Wine Estates on 6-week high amid Chinese Winery purchase

Treasury Wine Estates

10/12/2024 24:36

(Adds Citi comments)
    ** Shares of winemaker Treasury Wine Estates  TWE.AX  rise
as much as 4.1% to A$11.960, hitting their highest level since
Oct. 23
    ** Co is set to acquire 75% of Ningxia Stone & Moon Winery
Co ("Stone and Moon"), situated in north-western China for about
A$27.5 million ($17.70 million) 
    ** Terms include an option for co to acquire the remaining
25% after five years.
    ** Asset base of Chinese winery includes 43 hectares of
planted vineyards
    ** Brokerage Citi believes the acquisition to be positive,
citing rising popularity of wine among local consumers and its
positioning in the country's wine industry, which allows for
longer-term market access prospects
    ** Also emphasizes potential for vineyard's expansion given
the facility's capacity for a future cellar door and expansion
    ** Stock posts its biggest intraday percentage gain since
Oct. 14
    ** Stock has risen 6.6% YTD, as of last close


($1 = 1.5533 Australian dollars)

 (Reporting by Nichiket Sunil in Bengaluru)
 ((Reuters.Briefs@thomsonreuters.com))