Madison Wine Announces Its Intention to Acquire World's Largest Auction House Acker Merrall & Condit

HONG KONG, April 13, 2016 /PRNewswire/ -- Madison Wine (Stock Code: 8057.HK) today announced that it has signed a Memorandum of Understanding to acquire one of the world's largest wine auction house Acker Merrall & Condit (Target Company). Madison Wine intended to acquire and own up to 45% equity interest in the target company.

"Our company is facing stiff competition in the wine market. The acquisition plan is aligned with our long-term development strategy, in which will maximize our corporate interests and shareholder value," Madison Wine's executive director Mr. Kao Sheng-Chi said.

The strategic significance of this proposed acquisition includes:

1. Our target company Acker Merrall is not only the oldest wine shop in America but also one of the largest wine auction house globally. The proposed expansion of the Group's business into upstream activities, in synergy with our existing engagement downstream, will ensure a sufficient supply of products and increase our distribution channels, therefore to better respond to the fast-changing market trend.
2. If materialized, the two companies will continue to operate independently after the acquisition, while at the same time will both benefit from an increase in customer case and potential revenue.
3. Madison Wine over the year has always been striving to upgrade its business and be the leader in Hong Kong's wine industry. The proposed acquisition will not only benefit Madison Wine with a boost in reputation and brand image in the wine industry, but also an expansion of the Group's geographical network and market share into a more global market.

Upon completion of the proposed acquisition, Madison Wine and Acker Merrall shall be entitled to appoint two and three directors to the board of the target company respectively.

Notes to editors

About Madison Wine Holdings Limited (Stock Code: 8057)

Madison Wine Holdings Limited was listed on the Hong Kong Exchange on 8 October 2015. Our business have continued growing and received constant support from wine lovers in Hong Kong since the opening of our first shop in 2012 on Queen's Road East. In 2015, we have relocated our flagship store to Gloucester Road in Wanchai with a continuously growing selection of rare, fine and premium wines. For more information, please visit our website http://www.madison-wine.com/.

About ACKER MERRALL & CONDIT (ASIA) LIMITED

Founded in 1820, Acker Merrall and Condit is the oldest wine retailer in America and one of the largest auctioneer for fine and rare wines in the world. With affiliated companies in Hong Kong, New York City and Chicago, Acker Merrall hosts more than 20 auctions every year, both live and on the Internet.

Acker Asia was born after the company held its first Asia sale in the emerging market in 2008. The first auction held in Hong Kong was a tremendous success selling over US$8 million of wine. Visit the company's website at https://www.ackerwines.com.

Acker Merrall & Condit, Asia headquarter
S3/F, China Merchants Godown B, 18 Sai Ning Street, Central, Hong Kong
T: +852-2525-0538 
E:  info@ackerasia.com

Media Contacts:

Fu Lai Financial Group Limited
Jason Lo        
T: +852-3959 3604 / +852-9306-5538
E: jason@fulaigroup.com.hk / cnajason@hotmail.com

Millie Choi   
T: +852-3959-3603 / +852-9823-1929
E: milliechoi@fulaigroup.com.hk