Lord Ashcroft uncorks £7 million for GusbourneComments Off on Lord Ashcroft uncorks £7 million for Gusbourne
Conservative billionaire Lord Ashcroft is dipping into his small change to pump up to an extra £7 million into the English wine company he controls.
Gusbourne, which has vineyards in Kent and West Sussex, has launched an issue of deeply discounted bonds with warrants attached to convert them into shares up to a maximum of £10 million.
It says the money will be used to cultivate immature vineyards planted over the past three years, extra plant and equipment for the winery and extra working capital to build its sparkling wine stock.
Ashcroft, who owns 64% of the equity, has effectively underwritten the bond issue by pledging to take up his full entitlement and up to a further £2 million worth.
Gusbourne said in its statement: “The production of a premium sparkling wine from new vineyards is by its very nature a long-term project and requires funding to support the investment.”