Arab Today, arab today investors agree to split foster\s
Last Updated : GMT 02:18:28
Arab Today, arab today
Arab Today, arab today

Foster's beer and wine to split

Investors agree to split Foster\'s

Arab Today, arab today

Arab Today, arab today Investors agree to split Foster\'s

Beer will remain big business at Foster's, as it spins off its troubled wine division.
LONDON- Arabstoday

Beer will remain big business at Foster\'s, as it spins off its troubled wine division. Investors in Foster\'s have voted for an amicable divorce at the Australian drinks company. At a meeting in Melbourne, more than 99% of votes were cast in favour of a demerger, creating two stand-alone companies. Foster\'s will keep its profitable beer business, which sells the Carlton and United Breweries brands. A newly-created company called Treasury Wine Estates will take over Foster\'s troubled wine division. The company will control assets and vineyards in Australia, Europe and the US. Both firms will be listed in Australia.
Analysts expect each to attract considerable interest from potential bidders such as drinks conglomerates and private equity groups.\"Theoretically, the split makes sense, but we won\'t know for sure until the stocks have traded independently for a while,\" said Donald Williams, portfolio manager at Platypus Asset Management. \"The wine business needs a better pricing environment before it is likely to perform,\" he added.
Foster\'s, Australia\'s largest brewer, expanded into the wine business 15 years ago with the acquisition of the Mildara Blass brand. But the wine division, with labels such as Penfolds, Wolf Blass and Beringer, has for years been a financial drain on the more successful beer business. Analysts say an oversupply of grapes over the past decade has forced wine prices to fall.
Expensive divorce
Not all analysts agree the demerger will create value, as Foster\'s board believes.Greg Dring, an equities analyst at Macquarie, reckons the divorce could cost as much as 1bn Australian dollars ($1.1bn). \"Their claim about value creation appears to lack substance,\" he wrote in a research report. \"In fact, in the short term, the demerger would likely destroy value.\"
Mr Dring said it was unclear whether the two companies would be able to make more money separately. Besides low wine prices, Foster\'s has been hurt by the strength of the Australian dollar, which makes its products more expensive overseas compared with competitors.
The demerger is expected to come into effect on 9 May. Shares in both firms may start trading in Australia as early as 10 May.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today investors agree to split foster\s Arab Today, arab today investors agree to split foster\s

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today investors agree to split foster\s Arab Today, arab today investors agree to split foster\s

 



Arab Today, arab today Designer Rania Adel reveals her new collection

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday