Foster's to split wine and beer divisions into separate listed companies
15 Feb 2011
Foster's Group, Australia's largest brewer, today released details of its long-awaited plan to split its struggling wine division from its profit-making beer unit and form two separate listed companies.
The structural separation, first proposed last May, (See: Fosters to split wine and beer units) will result in independent companies listed on the Australian stock exchange (ASX) for its wine business and its beer, cider and spirits business.
The demerger 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 demerger.
Following the demerger, Foster's is expected to remain in the S&P/ASX50, while Treasury Wine Estates is likely to included in the S&P/ASX100 following its listing on ASX.
Foster's expects the demerger to be completed in May 2011, subject to shareholder and court approvals.
Under the demerger, shareholders will receive one Treasury Wine Estates share for every three Foster's shares, while retaining the Foster's shares.
