Foster's Brewing Group Limited ("Foster's") announced today that its wholly owned subsidiary, Cellarmaster Wines Pty Limited ("Cellarmaster"), will make a cash offer of 35 cents per share to acquire all the ordinary shares in Wine Planet Holdings Limited ("Wine Planet") to which it is not currently entitled. Foster's presently owns approximately 25% of Wine Planet, through Cellarmasters.
If successful in its bid to acquire Wine Planet, Foster's intention is to focus the business activities in offshore markets.
Foster's President and CEO, Mr Ted Kunkel said, "The acquisition will allow Foster's to reconstruct Wine Planet into an international wine e-tailing business in support of our European and Asian wine clubs."
"We will look at a range of options in relation to the Australian assets. However, if the offer is successful, Foster's will not continue to operate the Wine Planet domestic e-tailing business in its own right," he said.
The Wine Planet board has confirmed that it will recommend the offer to its shareholders, and the independent directors, who collectively hold 23% of the issued shares of Wine Planet, have also stated that they intend to accept the offer in respect of their own shares, in the absence of a higher offer.
Foster's believes the offer is fair and reasonable. The offer values Wine Planet equity at approximately $56 million compared to its market capitalisation of approximately $35 million at last Friday's close. The offer represents a premium of:
Mr Kunkel said: "This is a highly attractive offer which we believe provides Wine Planet shareholders with a cash offer at a premium to what they would otherwise be able to realise."
The acquisition will be funded using existing debt facilities. However, Foster's cash outlay of approximately $42 million broadly equates with the cash in the business.
The offer is subject to a number of conditions which are set out in Appendix 1. The offer will be open for one month, unless extended.
Full details of the offer will be set out in Foster's Bidder's Statement which is expected to be lodged shortly and despatched to Wine Planet shareholders in April.
Further information:
Media
Lisa Keenan
Tel: +613 9633 2233
Email: lisa.keenan@fostersgroup.com
Investor Relations
Domenic Panaccio
V-P Capital Markets
Tel: +613 9633 2641
Email: domenic.panaccio@fostersgroup.com
