DB shareholders to get Corbans' cash

By Phil Boeyen, ShareChat Business News Editor

Thursday 12th October 2000

New Zealand brewer DB is planning a one-for-two share cancellation and will repay $3.00 for each share cancelled, using the money it receives from the Corbans' sale to fund the capital repayment.

The move will cancel 50.4 million of DB's issued shares and repay around $151.3 million to shareholders.

DB chairman, David Sadler, says the funds to be realised from the sale of Corbans are surplus to DB Group's requirements and the board has decided that they should be returned to shareholders.

"The Directors have reviewed the ongoing capital requirements and available funding for DB Breweries and consider that any future capital expenditure can be funded from available cash balances, from cash flow or by specific project funding."

DB says assuming that shareholders approve the arrangement, the proposal is then subject to the approval of the High Court and to the completion of the Corbans sale, which is due to take place by 23 November. Montana shareholders are due to vote on the acquisition before the middle of next month.

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