LION NATHAN TO SELL WINE ASSETS?
Australian brewer Lion Nathan may sell a part of its wine business, valued at about $185 million in total, according to Credit Suisse analysts.
What was the tip off? Lion Nathan said last week it would not reactivate a A$200 million share buyback plan, which seems a little strange to industry observers. One option for Lion Nathan is to retain the Australian and NZ selling divisions, but sell the brands and hard assets, said CS analyst Larry Gandler.
"We conclude that Lion Nathan is considering divesting part of its wine division," he said.
Japan’s Kirin Brewery Co. owns 46% of Lion Nathan, whose brands include Petaluma, St. Hallett’s, Wither Hills and Argyle. Its shares have gained 4.8% in the past month and 18.5% over the past year.
What was the tip off? Lion Nathan said last week it would not reactivate a A$200 million share buyback plan, which seems a little strange to industry observers. One option for Lion Nathan is to retain the Australian and NZ selling divisions, but sell the brands and hard assets, said CS analyst Larry Gandler.
"We conclude that Lion Nathan is considering divesting part of its wine division," he said.
Japan’s Kirin Brewery Co. owns 46% of Lion Nathan, whose brands include Petaluma, St. Hallett’s, Wither Hills and Argyle. Its shares have gained 4.8% in the past month and 18.5% over the past year.
posted at 2:46 PM
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