Chinese group Red Gate (Xinjiang) Winery Co., Ltd expressed its interest in buying the Villa Zorilor winery in Zoresti, Buzau county, for EUR 3.63 million, according to a letter of intent sent to insolvency company RVA, which manages the sale process.

The winery is now property of Vinarte, a Romanian winemaker which went insolvent in 2011. The asset sale is part of the business restructuring process managed by RVA Insolvency Specialists. This sale will allow the company to pay all of its debt, according to RVA.

The offer from the Chinese company is non binding and the transaction must first be approved by Vinarte's creditors.

The asset package for sale consists of about 94 hectares of vineyard, buildings and equipment for wine production valued at EUR 1.08 million, wine inventories valued at EUR 1.66 million and the wine brands of the winery, which are valued at EUR 182,000 to EUR 769,000, according to a report by RVA. The main wine brands are Villa Zorilor and Prince Matei.

Vinarte was founded in 1998 by Italian investor Sergio Faleschini who is still the main shareholder of the company. He was one of the first foreigners to start a winemaking business in Romania. Except Villa Zorilor, Vinarte holds two more wineries: Starmina in Mehedinti county, close to the Danube, and Bolovanu in Samburesti wine region, Olt county, with a total of 250 hectares of vineyards. Some of the most renown brands it still holds are Prince Mircea (Merlot), Castel Bolovanu and Castel Starmina.

In 2012, Vinarte had a turnover of about EUR 2.6 million, according to data from the Finance Ministry.

editor@romania-insider.com

(photo source: Villa Zorilor, Vinarte)