Shares in Treasury Wine Estates Ltd (ASX: TWE) have piled on more than 10% across the past two trading days after it emerged that French billionaire Olivier Goudet had acquired a significant stake in the company.
Treasury lodged a statement with the ASX on Christmas Eve, indicating that Mr Goudet had increased his stake to 41 million shares in the Penfolds producer, with that stake worth about $226 million at the company's share price on Monday.
Corporate raider
Mr Goudet is well known in European business circles as the former head of JAB Holding, which managed the wealth of Germany's Reimann family.
While in that role, Mr Goudet spearheaded the takeover of companies including Krispy Kreme and Pret a Manger, and according to a report in The Australian, he also personally bought a chateau in Bordeaux with his wife in 2021.
Mr Goudet, who was also the former Chief Financial Officer at Mars, stepped down from JAB Holding in 2023.
Buying the dip
The significant shareholder notice lodged with the ASX shows Mr Goudet's Luxembourg-based company, Platin, started buying shares at $6.78 back in early October.
The purchases continued on an almost-daily basis right through to December 23, when Platin picked up 3.9 million shares for $5.
Treasury shares are down significantly from their 12-month highs of $11.48, achieved at about this time last year. The company recently wrote down the value of its US business by $687 million and warned in mid-December of ongoing weakness in its US and China businesses.
New Chief Executive Sam Fischer announced on December 17 that the company would launch a $100 million cost-cutting program, warning that "category dynamics have weakened in recent months''.
The company also said its ultra-luxury tiers, "while in growth globally, are performing below expectations, reflecting weakness in global fine wine markets''.
Mr Fischer said regarding the outlook:
We are currently experiencing category weakness in the US and China, two of our key growth markets, which will impact our business performance in the near-term. Maintaining the strength of our brands and the health of their respective sales channels is of critical importance to our Management team and our Board as we navigate through the current environment.
TWE is a high-quality business with strong foundations in place for sustainable, profitable growth. Our powerful portfolio of brands, leading market positions in attractive growth markets, unparalleled supply chain and highly engaged, capable team are all considerable strengths that position us strongly to deliver sustainable, profitable growth over the long-term.
Treasury shares traded as high as $5.54 on Monday before settling back to be 1.8% higher at $5.49.
