Former Tory chair Lord Ashcroft to ‘open discussions’ on selling Gusborne wines stake
Former conservative chair Lord Ashcroft will seek “open discussions” with the board to explore strategic options for his majority stake, including a possible sale of the company, Gusborne announced today.
There is “no certainty” of a sale or an offer at this stage, the company said.
Ashcroft owns over 40m shares in AIM-listed Gusborne, equivalent to 66.76 per cent of the company. The company has a market cap of £40.17m.
Options for Gusborne include a sale, strategic merger, or a debt restructuring programme, Ashcroft added.
Gusborne is a producer of English luxury wine, a rapidly growing market. It recently launched the most expensive English sparkling on the market, Fifty One Degrees North, at £195.
It was launched in 2004 by Andrew Weeber and acquired by Lord Ashcroft in 2013 for £7m. Weeber retained a 13 percent holding and became non-executive chairman. He held this position until last year.
In addition to his majority stake in Gusborne, a company owned by the peer holds a £20m long-term secured deep discount bond.
In 2022, Ashcroft announced a similar intention to open discussions with the board over his majority stake in recruitment firm Impellum.
The company was sold the next year for £483m, at a total price per share of 1.084.4p – including a dividend for shareholders. He netted £300m from the sale of the firm.
“At the tender age of 78, I am reviewing my future options and would like to conduct a similar exercise [to Impellum] with regard to Gusbourne,” Ashcroft said. “I am flexible as to the outcome.”
The strategic vision of the company remained “unchanged” Gusborne’s chief executive, Jonathan White, said. “We look forward to entering into constructive discussions which may arise from this process, at what is an exciting phase for the fast growing English fine market.”
“We would like to thank Lord Ashcroft for his support in helping establish Gusbourne into the business it is today,” White added.