By Andrew Starke
Foster’s Group shareholders will decide the fate of the company’s demerger plans next month (April) after the Supreme Court of Victoria ordered a meeting be convened.
A scheme meeting and general meeting will be held at Melbourne Recital Centre, 31 Sturt Street, Southbank, on Friday, April 29 at 9am.
If the split becomes effective, eligible shareholders will receive one share in Treasury Wine Estates, which will be a newly listed company on the Australian Securities Exchange for every three Foster’s shares held on the record date, currently expected to be on Monday May 16.
Foster’s also released a ‘Demerger of Treasury Wine Estates Scheme Booklet’ yesterday (March 17) in which it makes its case for the demerger while warning shareholders of potential risks involved.
“The advantages of the Demerger include greater flexibility and enhanced focus on each business, the ability to adopt independent capital structures and financial policies, greater investment choice, increased transparency for investors and increased flexibility for New Foster’s and Treasury Wine Estates to determine their respective compensation and incentive plans,” said chairman David Crawford.
“The disadvantages of the Demerger include reduced size and diversification of the businesses, one-off transaction costs, additional corporate and operating costs, and higher interest costs and increased counterparty credit risk for New Foster’s.”
To view the complete booklet; which includes all relevant dates, background to the demerger and frequently asked questions, click here.