Foster’s Group Ltd suffering huge losses

The fate of Foster's Group still uncertain

In brief: Foster's CEO Ian Johnston refuses to comment on reports on the proposals to buy its beer division made by SABMiller Plc and Asahi Breweries Ltd.

Foster’s Group Ltd., the largest Australian producer of beer and wine, reported losses in the second half of the fiscal year after a writedown in its wine business. Brewing company’s net loss amounted to 820.1 million Australian dollars in the first half-year that ended in June, compared with a net profit of 27 million Australian dollars previous year, the company said.

At the moment Foster’s office is considering separation of its wine business after the loss of 2.7 billion Australian dollars over the past seven years. Now British SABMiller and Japanese Asahi Breweries show interest in Foster’s brewing division, whose market capitalization is estimated at $ 10 billion. However, none of the potential buyers have made a formal proposal yet. Both companies are refraining from comment, while in Foster’s said in knew nothing about such a transaction. According some reports, SABMiller is particularly interested in Foster’s brewing assets, while Asahi may buy the Australian company before its splitting into the respective wine and brewing directions, scheduled for 2011.

Igor Tringlers
2010-08-24 14:11, Commodities.

News on: , , , , ,

Post a comment