By Andrew Starke

The Foster’s Group has jumped the final hurdle in demerging its beer and wine business with the strong Australian dollar likely to prevent any last minute bid to acquire the company.

On Wednesday afternoon the Supreme Court of Victoria approved the scheme of arrangement for the demerger of Treasury Wine Estates from its parent company.

The action was previously approved by shareholders at the Scheme Meeting held last week.

Foster's proposes to lodge the orders of the Court with the Australian Securities and Investments Commission on Monday (May 9) and the Scheme will become effective on that date.

Treasury Wine Estates is expected to commence trading on the Australian Securities Exchange the next day (Tuesday May 10).

Shares in Treasury will initially trade on a deferred settlement basis and will commence normal trading on May 24.

The demerger is expected to be officially implemented on Friday May 20.

While both wine and beer operations have been the subject of intense takeover speculation, analysts believe likely suitors will adopt a wait-and-see approach while the Australian dollar continues to trade at record levels against major currencies.

 

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

Leave a comment

Your email address will not be published. Required fields are marked *