Top Shelf International Holdings Ltd (ASX:TSI) Announces Facility Sale
Sale Agreement Details
Top Shelf International Holdings Ltd (ASX:TSI) has entered into a binding term sheet for the sale of its plant and equipment at the Campbellfield production facility to Idyll Wine Co Pty Ltd (IDL). The sale includes all operational and production assets, such as canning and bottling lines, a brewhouse, and distillery. However, the whisky maturation and warehouse facility at Somerton are excluded from the sale.
Additionally, the contract entails the sale of a small portion of Top Shelf’s excess bulk whisky inventory to IDL. The total consideration for the transaction is $8 million, subject to adjustments related to certain historical entitlements of transferring employees.
Financial Implications
Proceeds from the asset sale and excess whisky inventory will be utilised to cover transaction costs and reduce the Company’s debts, including outstanding Australian Taxation Office excise liabilities.
Future Operations
Post-sale, Top Shelf plans to establish a co-packing arrangement with IDL for the continued production of its branded products. Completion of this sale is contingent upon negotiating long-form documentation and obtaining necessary third-party consents and approvals.
Executive Comments
Top Shelf’s Board has meticulously approved the transaction, outlining a strategic move towards refining asset management and optimising operational efficiency as they secure their future in premium spirits production.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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