Foster's spin-off Treasury Wine valued at $2.2 billion

After being separated from Australian beer maker Foster's Group, the second-largest winemaker in the world, Treasury Wine Estates Ltd, gained a valuation of $2.2 billion (A$2.3 billion) in its first day of trading.

The Melbourne-based company has around 650 million shares on issue with Foster's investors gaining one share for every three they had owned in the combined company.

Treasury, includes brands like Penfolds and Beringer, and was spun off by Foster's after more than $2.5 billion of writedowns to allow the brewer to focus on its 50 per cent share of the Australian beer market. The separation came about yesterday.

Since the announcement of the break-up plans last year, media reports have linked Fosters' to potential bids from a number of international rivals.

SABMiller Plc was considering an offer for the beer business, according to a report in the Sunday Times dated  22 August, however the report did not disclose the source of the information. Asahi Breweries Ltd of Japan had hired advisers to look at the beer business, according to a report in the Times dated 24August.

David Dearie, who has been in the wine business in Australia and New Zealand since July 2009, has become  chief executive officer at Treasury while John Pollaers is taking the same role at Foster's after being in charge of its Australian beer operations for a year.