Xanadu in search for acquisitions

MARGARET River winemaker Xanadu is set to hit the acquisition trail in a stock market listing planned for as early as next week after raising about $8 million in new equity.

Raised both overseas and domestically, the new funds will take the wine group’s capital-isation to about $30 million.

According to the company, WA stockbroker Hartley Poynton is among the new investors, as well as some institutional investors from the UK.

Managing director Andrew Moore said the company had been waiting to finalise the fund raising before signing off on early listing plans first revealed by Business News last month.

Mr Moore said the company was expecting to make some purchases almost straight away, looking at opportunities both in WA and, like rival Evans & Tate, interstate as well.

“I like the Petaluma model. They have good brands from good regions,” he said.

“You have to find something special to add value.”

The compliance listing will make Xanadu WA’s fourth listed wine company, though the first, Vincorp, is little more than a cash box company which is fighting for its corporate survival from a takeover bid by NSW-based Simon Gilbert Wines.

WA’s second biggest winemaker Evans & Tate and new Margaret River player Hotham Wines are the only other two listed players, with the exception of Houghton which is owned by national giant BRL Hardy.

Xanadu is the evolution of the Margaret River operation Chateau Xanadu, which was founded by the Lagan family but has since seen the majority of the equity taken by outsiders through an association with major shareholder Norgard Clohessy Equity.