P.M. BRIEFING : Brewery Seeks Sale to Ease Debt
Australian brewing and investment magnate Alan Bond sought respite today from his huge debt load with a multibillion-dollar deal to sell half his brewing business to New Zealand’s Lion Nathan.
But financial analysts were skeptical whether the deal would succeed after earlier debt-relief plans from Bond have failed. “If it goes ahead, it may buy Bond breathing space,” said broker Nestor Hinzack of Burdett Buckeridge and Young in Sydney. “But that is a big ‘if.’ ”
An elaborate chain of takeovers, acquisitions and approvals from stock market watchdogs and shareholders will be required before the deal is done.
Under the proposal, Perth-based Bond Corp. will sell its Australian breweries to a new venture company for $1.9 billion. Lion Nathan and Bond would end up with equal shares of the new company, Australian Breweries.
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