News: TWE Treasury Wine Estates Says To Consider Demerger Of Penfolds

April 8 (Reuters) - Treasury Wine Estates Ltd (TWE) :

• TO CONSIDER A DEMERGER OF PENFOLDS AND ACCELERATE ITS SEPARATE FOCUS ON LUXURY VERSUS COMMERCIAL
• POTENTIAL DEMERGER IS EXPECTED TO BE COMPLETED BY END OF CALENDAR YEAR 2021
• IF POTENTIAL DEMERGER IMPLEMENTED, TWE SHAREHOLDERS WOULD OWN A SHARE IN PENFOLDS AND IN NEW TWE PROPORTIONAL TO EXISTING HOLDINGS
• IF COMPLETED, ANTICIPATED POTENTIAL DEMERGER WOULD CREATE NEW TOP ASX 50-100 CO LISTED ON AUSTRALIAN EXCHANGE FOR PENFOLDS
• IF DECISION IS MADE TO PROCEED, POTENTIAL DEMERGER EXPECTED TO BE COMPLETED BY END OF CALENDAR YEAR 2021
• AT 31 MARCH 2020 TWE'S LIQUIDITY, COMPRISING CASH AND UNDRAWN COMMITTED DEBT FACILITIES, WAS ABOUT $1.1 BILLION
• CERTAIN PARTS OF BUSINESS HAVE BEEN, OR ARE EXPECTED TO BE, IMPACTED DUE TO INCREASING GOVERNMENT RESTRICTIONS
• IN CHINA TWE'S STAFF HAVE RECENTLY RETURNED TO WORKING IN OFFICE, AS HAVE MOST OF ITS PARTNERSHIP NETWORK
• SUPPLY CHAIN OPERATIONS CONTINUE TO FUNCTION IN EACH GEOGRAPHY, NO MATERIAL INTERRUPTIONS HAVING BEEN EXPERIENCED THUS FAR
• CERTAIN PARTS OF TWE'S BUSINESS EXPECTED TO BE IMPACTED DUE TO GOVERNMENT RESTRICTIONS

Source text https://reut.rs/2RjV6PU

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