Viva Wine Group, a prominent player in the European wine import and distribution sector, is poised to transition back to private ownership. Riesling Ventures, a bidding consortium established by the company’s three largest shareholders—including CEO Emil Sallnäs—has launched a public takeover offer. The group is proposing to acquire all outstanding shares of the Stockholm-listed entity for Skr38.5 ($3.96) per share in cash.
Consortium Structure and Premium Details
The consortium backing the buyout represents the core founders and strategic leaders of Viva Wine Group. It is comprised of Late Harvest Wine Holding 1971 (controlled by CEO Emil Sallnäs), Vin & Vind (owned by senior adviser Björn Wittmark and family), and Legendum Capital (owned by board member and business development director John Wistedt). The bid values the entire share capital of Viva Wine Group at approximately Skr3.45bn, representing a 38% premium over the company’s closing price on 26 June.
The Strategic Drivers Behind Going Private
CEO Emil Sallnäs indicated that the public market has failed to act as an optimal platform for the group’s next developmental phase. Since listing on the Nasdaq First North Premier Growth Market in 2021, Viva Wine Group expanded net sales by over 60% to Skr5.5bn and transitioned to the Nasdaq Stockholm Main Market. However, the stock price has retreated approximately 40% since the IPO. The company cited persistent market challenges, including:
- A continuous divestment of holdings by larger institutional owners, which disrupted the stability of the shareholder base.
- A decline in shareholder numbers to approximately 6,4000 as of May.
- Severely constrained share liquidity driven by a low free float, given that the founders hold a massive portion of the share capital.
- A structural downturn in global wine consumption and slower growth in the e-commerce channels.
Recent Financial Performance and M&A Integration
For the April to May period, Viva Wine Group reported a 33.2% increase in revenue to Skr1.03bn, primarily bolstered by the acquisitions of Delta Wines and the Norwegian non-alcoholic beverage importer Alpha Brands. Despite top-line gains, organic sales declined by 8.3%. Adjusted EBITA was recorded at Skr54m, equating to an adjusted EBITA margin of 5.2%—a decline from the 7.5% margin registered in the second quarter of 2025. This margin pressure has been attributed to elevated freight rates, currency volatility, and integration costs of lower-margin acquired targets.
Bid Acceptance and Thresholds
The bidding consortium currently controls 62.79% of the shares and votes. With additional irrevocable undertakings representing 11.54% of the share capital, total committed support stands at 74.33%. The completion of the takeover remains conditional on achieving a 90% acceptance level on a fully diluted basis, alongside standard regulatory approvals. Viva Wine Group’s independent bid committee has unanimously recommended that remaining shareholders accept the offer.
Frequently Asked Questions (FAQ)
What is a shareholder consortium takeover?
A shareholder consortium takeover occurs when an alliance of existing major shareholders joins forces to buy out all remaining minority shareholders in a company. This strategy is frequently used by founders to regain complete operational control and delist the firm from public exchanges.
Why do public companies decide to go private?
Companies often return to private ownership to escape the short-term earnings pressure of public markets, reduce regulatory compliance costs, and restructure operations with greater flexibility. Low share liquidity and depressed valuations are primary catalysts for going private.
What happens if the 90% acceptance threshold is reached?
In Swedish equity markets, reaching a 90% ownership threshold allows the bidder to initiate a compulsory redemption process (squeeze-out) to acquire the remaining 10% of outstanding shares and proceed with delisting the company from the exchange.
