Foster's Group Limited (Foster's) today announced details of the conversion status of its US$400 million 4.75% exchangeable bonds, issued in October 2000. The bonds are redeemable on 5 October 2003, with bond holders required to nominate their intention in relation to conversion or redemption as at 5pm on 29 September 2003 New York time (7.00am AEST on 30 September 2003).
The trustees for the bonds have received notification that bonds with a total face value of US$357,275,000, or 89.3% of the value of the bonds on issue, will be converted into 125,392,627 ordinary Foster's shares. In addition, Foster's has re-purchased US$30,000,000, or 7.5% of the face value of the bonds and US$12,725,000, or 3.2% of the face value of the bonds will be redeemed.
Foster's Chief Financial Officer, Pete Scott said: "The conversion status of the bonds is a key component in the determination of Foster's capital management activities."
"With clarification on the level of conversion, and after receipt of the net proceeds from the ALH IPO and Property Trust, Foster's will be in a position to advise the market in detail on the nature, scope and timing of its capital management plans. As the company has previously stated, it is our preference to deploy funds to acquisition activity if a strategically aligned, financially compelling investment opportunity is found. In the absence of such an opportunity and with reference to market conditions, the company intends to use excess funds for capital management initiatives," he said.
Foster's today also lodged with the Australian Stock Exchange its intention to commence an on-market share buy-back of up to 40 million shares from 15 October 2003. Shares will be purchased subject to market conditions. This share buy-back is consistent with the group's previously stated capital management objectives of buying back shares to neutralise the issue of new shares through the group's dividend reinvestment plan and employee share scheme.
Upon determination of the net proceeds from the ALH IPO and Property Trust, Foster's intends to provide details on its broader capital management actions.
Goldman Sachs JB Were and Credit Suisse First Boston have been appointed to assist the company with its capital management program.
Media
Nicole Devlin
Tel: +613 9633 2261
Mob: 61 418 202 375
Investor Relations:
Robert Porter
Tel: +613 9633 2773
Mob: 0407 391 829
