Chapel Down’s stock experienced a significant decline of nearly 20% at one point on Friday after the London-based winemaker announced it would no longer pursue a sale following a four-month search that failed to attract a buyer.

The winery, supported by billionaire Lord Spencer of Alresford, had put itself up for sale in June as part of a strategic evaluation aimed at drawing interest from investors and international wine producers.

However, the company has determined that “no transaction would yield superior long-term shareholder value compared to Chapel Down remaining a standalone entity listed on Aim.”

Founded in 2002 and recognized as the largest winemaker in England, Chapel Down emphasized its commitment to only consider offers that would enhance shareholder value while continuing to drive the growth and consolidation of the English wine sector.

After transitioning from the Aquis exchange to London’s junior Aim market last year, the company specializes in sparkling wines and operates over 1,024 acres. Chapel Down aims to raise approximately £30 million to support its expansion plans, which include establishing new vineyards, constructing a dedicated winery near Canterbury, and developing a visitor center at its Tenterden location in Kent.

In an update to its investors, Chapel Down reported that the initial growing conditions in its vineyards were promising this year but deteriorated in September and October. The adverse weather conditions led to “some pressure from mildew and consequently reduced yields, given our strict quality focus.”

The company anticipates the grape harvest for 2024 to be around 1,875 tonnes, which is roughly half the output of 3,811 tonnes from an “exceptional” 2023. Coupled with expenses related to the strategic review, Chapel Down expects a shift from last year’s operating profit of £2.3 million to a pre-tax loss for the current fiscal year.

This announcement initially triggered a nearly 20% drop in Chapel Down’s stock price, which settled at a downturn of 5.5p, or 12.4%, closing at 41.5p on Friday.