(BS) - Treasury Wine Estates (TWE) has fielded two formal takeover offers from private equity firms, according to the Australian Financial Review.

KKR and TPG have each submitted an offer for the owner of Penfolds and other brands, after completing due diligence this week, according to the paper.

Both firms are seeking a scheme of arrangement proposal for the deal, with earlier pitches both targeting $5.20 per share, it reports.

That is significantly higher than TWE's closing price of $4.92 today.

Chief executive Michael Clarke has previously indicated he would like to stay at the head of the group under any private equity takeover.

The private equity interest follows a troubled period for the winemaker, which is seeking to reset its global operations with shifts including a focus on luxury branding and exclusive distribution deals, in what Mr Clarke describes as a pivotal year for the business.

TWE last month posted an annual loss of $100.9 million after tax, including mostly non-cash significant items of $280.6m as it realigned its inventory and destroyed 6 million bottles of old and excess stock.