Foster’s Wine Business Worth $3.3 Billion
Foster’s Group Ltd., Australia’s biggest brewer, may attract bids from buyout firms for its wine business worth A$3.5 billion ($3.3 billion), according to analysts at Bank of America Corp.’s Merrill Lynch unit.
Foster’s Group rejects proposal
“The Board of Directors of Foster’s Group Limited (Foster’s) has received an unsolicited expression of interest from an international private equity firm to acquire the wine assets of Treasury Wine Estates. The indicative, non-binding proposal involves a cash consideration of between $2.3billion and $2.7billion for 100% of the assets.
After considering the value range in the proposal, the Board of Foster’s continues to consider that a separation of the Wine business from the Beer business through a demerger is most likely to represent the best outcome for all Foster’s shareholders. In addition, the high level of conditionality, the requirement for exclusivity and other terms of the proposal are considered to reduce the value and certainty of the proposal.”
Treasury is the world’s second-largest wine business, trailing only Victor, New York-based Constellation Brands Inc.