English winemaker Gusbourne has called off a search for a buyer and will instead weigh up abandoning its listing on the London Stock Exchange’s junior market to take the business private.
The company said in a statement to the LSE that it had received a letter from majority shareholder Michael Ashcroft, the former Tory deputy chairman, requesting a general meeting to discuss delisting from AIM.
Shares in Gusbourne collapsed following the announcement, crashing 40% in value to an all-time low of 22.9p each.
Ashcroft opened discussions with the Gusbourne board in July to explore a possible sale of his 67% holding in the business.
However, Gusbourne said today, following receipt of the letter from Ashcroft, it had concluded its review of strategic options for the Tory peer’s stake and terminated talks with other parties in relation to a deal.
The board added it intended to call a general meeting of shareholders within the next 21 days, with the meeting to then be held within 28 days of that notice.
“Shareholders are advised to take no action at this time,” the statement said. “Further announcements will be made in due course.”
Last month, Gusbourne reported difficult trading conditions in the UK and overseas.
Revenues nudged up 1% to £7.1m in 2024 thanks to a boost from DTC sales. But UK trade sales declined 9% to £3.1m as drinkers carefully budgeted spending in the on and off-trade channels.