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Chapel Down's (LON:CDGP) Board announced today a strategic review to explore funding options for its long-term growth strategy. This move aims to ensure sustained and profitable expansion, underpinned by significant investments in vineyards, a new winery, and the development of a brand home in Tenterden.
Strategic Review for Long-Term Growth
The Board of Chapel Down is undertaking a strategic review to evaluate various funding options that will support the company’s ambitious growth plans. This review comes as Chapel Down embarks on substantial investments, including the establishment of new vineyards and a state-of-the-art winery set to be operational by the 2026 harvest. Additionally, the company is focused on developing its brand home at Tenterden.
Funding Options and Considerations
As part of this strategic review, the Board will explore a comprehensive range of funding alternatives. These include potential investments from both existing and new shareholders, the possibility of selling the company, and other relevant transactions. The Board aims to identify the most suitable option that aligns with the company’s long-term growth objectives.
Financial Position and Growth Prospects
Chapel Down is on track to achieve double-digit sales growth in 2024, maintaining a robust balance sheet with substantial headroom under its existing £12 million debt facility. Furthermore, the company has reached an agreement in principle to extend and increase this facility, providing additional financial flexibility to support its growth plans.
No Certainty of a Transaction
While the strategic review is comprehensive, the Board emphasizes that there is no certainty a transaction will be pursued, nor can the terms of any potential transaction be guaranteed. The review is aimed at exploring all viable options to ensure the best outcome for Chapel Down’s long-term growth and profitability.
Advisory and Regulatory Support
Rothschild & Co is serving as the Lead Financial Adviser to Chapel Down for this strategic review. Singer Capital Markets is acting as the Nominated Adviser and Broker to the company. Robert Smith, the Chief Financial Officer, is responsible for coordinating the release of this announcement on behalf of Chapel Down.
Takeover Code and Offer Period
The Takeover Panel Executive has granted Chapel Down a dispensation from Rule 2.4(b) of the Takeover Code. This means that the company is not required to disclose the identity of any potential offeror unless specifically identified in any rumors or speculation.
