The ‘de-merger’ will be effected through the separation of Foster’s wine business, Treasury Wine Estates, from Foster’s which will retain all assets, rights and liabilities that are not transferred with Treasury Wine Estates pursuant to the de-merger.
Foster’s expects the de-merger to be completed in May 2011 subject to shareholder and court approvals.
“Foster’s has completed a detailed evaluation of the issues, costs and benefits of the de-merger and the board unanimously considers that the de-merger represents the best path forward and is in the best interests of Foster’s shareholders,” said Foster’s chairman, David Crawford. “The performance improvement programme implemented following completion of the Wine Strategic Review in February 2009, including revitalisation of the management team, has produced encouraging results.
“Benefits are now being delivered by the separate organisational structures for beer and wine in Australia, and the board has formed the view that further benefits will result from a complete separation and now is the right time to pursue a de-merger of Treasury Wine Estates from Foster’s.
“The de-merger will allow Foster’s shareholders to benefit from owning Treasury Wine Estates shares and to participate in any value creation within that business including from improved market conditions in the wine category.”
The de-merger requires approval from Foster’s shareholders and the Supreme Court of Victoria. Subject to initial court approval, a scheme booklet which will contain further information about the de-merger is expected to be sent to shareholders in late March 2011, with a shareholder meeting to consider the de-merger to be scheduled for late April 2011.
Final court approval will be sought following the shareholder meeting.
Source: Foster’s Group
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