ASX - Foster's Acquires Further 29% of FGPL

Melbourne, 01 May 2009

 

Foster’s Group Limited (Foster’s), has today agreed to purchase Fijian Holdings Limited’s (FHL) 29.0% shareholding in Foster’s Group Pacific Limited (FGPL) for F$13.26 per share.  The transaction values FHL’s shareholding at F$40 million and increases Foster’s ownership interest in FGPL to 89.6%. 

 

FGPL owns and operates breweries and distilleries in Fiji and Samoa, producing and distributing various brands including Fiji Bitter, Fiji Gold and Vailima. Foster’s purchased its initial stake in December 1957 and currently holds 60.6% of the shares in FGPL. 

 

FHL first approached Foster’s regarding a potential sale of FHL’s shareholding some time ago and today’s announcement represents the outcome of ongoing discussions between Foster’s and FHL and other Fijian constituents.

 

Whilst general business conditions in Fiji remain challenging, the transaction simplifies the future ownership arrangements of FGPL, an entity already controlled and consolidated within Foster’s accounts.  The transaction is earnings per share accretive but not considered material to Foster's.

 

“Increasing our level of ownership provides us with greater strategic alignment and flexibility with respect to ongoing investment and management of Foster’s Pacific business, particularly through the current business climate”, Foster’s CEO, Ian Johnston said. “Over many years, Foster’s has enjoyed supplying great products to the Fijian and Samoan communities and providing employment to more than 300 people.”

 

Ms Sereana Qoro, Managing Director of Fijian Holdings Ltd said, “FHL is an investment company with a portfolio of more than 24 investments.  FHL continually reviews and monitors its investment portfolio.  By realising its investment in FGPL, FHL will be free to re-invest funds in new opportunities.” 

 

The transaction is subject to formal approvals by the Capital Markets Development Authority in Fiji, the South Pacific Stock Exchange, and Reserve Bank of Fiji.  The purchase is being undertaken by a Foster’s subsidiary Foster’s Australia Limited.

 

Mr Jaoji Koroi and Ms Sereana Qoro, representatives of FHL on the FGPL Board of Directors, will be stepping down from their roles at completion of this transaction and Foster’s intends to appoint an independent director to appropriately represent the interests of the remaining local minority investors in FGPL. 

 

Media                                                                         Investors

Troy Hey                                                                      Chris Knorr
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