23.11.14 Offer Received for Bodegas Valdivia

An Israeli group, Keren More LTC of Tel Aviv has tabled an offer of 3.3 million for the bodega which includes the Villa del Duque hotel, and has promised to invest a further 4.7 million to re-start the business. This offer represents a mere 20% of the 16 million value put on the ex Nueva Rumasa business, but is the only serious offer received in the three and a half years since the business went into administration.

Entrance to bodegas with hotel on left (foto:diario jerez)

The administrators feel that poor though it is, this is the best option to conclude the sale of the company. The economic crisis has hit Spain badly and Jerez in particular, and the bodega business is not attractive to potential investors. Keren More will have to prove that they have absolutely no link to Nueva Rumasa, who had notoriously devious ways and means of hiding their presence in deals.

The proposal is to purchase the 19,000 m2 of bodegas (Valdivia, Pedro Valdivia and Sacromonte) as well as the hotel and all equipment. There are plans to buy more wine and brandy stock and barrels, to create a commercial department and develop new brands. New contracts of employment will be offered first to ex-employees, and about a dozen are expected in the first year.