It looks like Champagne Indage’s purchase of Loxton Winery in Australia is being put on hold according to press reports in Australia. Loxton is owned by Australian Vintage Limited which is Australia’s third largest winemaker. The company has said that Champagne Indage had failed to get the financing in place to complete the deal that was first announced back in March. According to press reports, Indage is seeking to raise 1.2 billion rupees ($37.5 million) in new shares to make the purchase.
Despite the bad news, Australian Vintage shares rose 1c to 65c but have still fallen 65 per cent in the past year.
The company, which is India’s largest winemaker, established a foothold in Australia through its purchase of the Tandou winery in South Australia last year. Shares in Indage have fallen more than two-thirds on the Mumbai stock exchange in recent months and the company now has a market value of $69 million.
In other news, Champagne Indage Ltd (CIL) announced its financial results for the quarter and six months ended September 30, 2008 recently. CIL’s net profit has increased by 35 per cent to Rs 707.14 Lakh as compared to Rs 523.77 Lakh in the corresponding period of the previous year. Sales and operating income has risen by 41 per cent.
Champagne Indage Limited (CIL) is India’s largest and oldest wine company and was established in 1982. It has presence across the globe and has more than 600 employees. Indage’s total global production capacity will reach 16 million cases of nine litres each, by the end of this financial year.