Make your money go further for just 25p per day

Majestic Wine: a sad exit for this former AIM star

05/08/2019 · Majestic Wine (WINE) 

AIM Inheritance Tax UK

Rowan Gormley, founder of Nake Wines, in front of marketing wine bottles

Majestic Wine has agreed the sale of its retail and commercial businesses to US based investor Fortress Investment Group, which is owned by Japan’s Softbank. But what value remains in the Naked Wines business?


The sale of its physical retail division leaves Majestic Wines (LON: WINE) - set to change its name to reflect its new focus - to focus on its jazzier online Naked Wines business, with its angel investors and international potential. The history of Majestic Wines provides an interesting insight into the evolution of a business model, supplying a product which hasn’t changed at all during this time.

The acquisition is also an interesting move for the US based acquirer, which has a liking for real estate and is no doubt attracted by Majestic’s £40m of freehold property and the cash thrown off by the store estate.

A little history

Majestic Wine was admitted to AIM in October 1996 at a share price of 160p and market capitalisation of only £20m. For many years it was first pick for many Inheritance Tax planning portfolios, being a business that was easy to understand and follow, whose products were also greatly enjoyed by shareholders.

Our…

Sign up and read the full article

Register to continue reading this article.

Get FREE access now

Already a member? Login

Have your say

Log in or register to view or add comments.

For access to the top news and insights from the investment world

REGISTER FREE TODAY

Become a Champion Investor for as little as £3.20 per report or get a year's worth of money-making analysis for just £90.

SUBSCRIBE NOW

More on Majestic Wine

What’s going on AIM?

07/08/2019 · Podcasts

In this special episode of the Investor’s Champion podcast, we spoke to Chris Boxall from our…


Majestic Wine: a sad exit for this former AIM star

05/08/2019 · Investors Clinic

Majestic Wine has agreed the sale of its retail and commercial businesses to US based investor…


Majestic is going Naked, but at what cost to shareholders?

13/06/2019 · News & Insights

Majestic Wine – one of AIM’s oldest constituents and a prime pick for many Inheritance Tax…


Majestic Wine - AIM’s elder statesmen is rejuvenated but not being terribly open

27/11/2017 · Company research

Extra investment fizz from these small cap beverage stars!

05/02/2016 · News & Insights
The Beverages sector offers compelling defensive attributes, with the likes of Diageo (DGE), the world’s…

More Investors Clinic

Battle of the booze: how to benefit from a battered market

14/08/2019 · C&C · Molson Coors

Do non-executive directors really add value to smaller quoted companies?

Taylor Wimpey vs Lennar: is there more value in a US housebuilder?

08/08/2019 · Lennar · Taylor Wimpey