Foster's Group Limited (Foster's) today announced its intention to return up to $200 million to
shareholders through an on-market share buy-back program.
Strong operating cash flows and proceeds from asset sales, including the recently
announced sale of Foster's brewing operations in India and Vietnam, have reduced net debt
balances to below $3.5 billion as at 30 June 2006.
This has created the opportunity to return funds to shareholders through an on-market share
buy-back program commencing mid-September 2006, subject to market conditions.
"The fact that Foster's is buying back shares only 12 months after the acquisition of
Southcorp is very significant," Foster's Chief Executive Officer, Trevor O'Hoy said. "It is
testament to the strong operating cash flow generation of our core multi-beverage and wine
businesses and to the significant value that we've realised from non-core assets during the
year."
Foster's remains committed to achieving metrics consistent with a BBB+(Standard & Poors) /
Baa1 (Moody's) credit rating by the 2008 financial year.
Foster's has appointed ABN AMRO to assist the company with its capital management
program.
$200 Million On Market Share Buy Back (PDF, 86 Kb)
