Lion sells 19% Montana stake

By Phil Boeyen, ShareChat Business News Editor

Wednesday 15th August 2001

Lion Nathan is selling its 19% penalty holding in Montana for $4.65 a share.

The brewer, which has tried a number of tacks to hold onto the disputed holding, says the shares are being sold to fifteen domestic and international institutions and the sales will be completed by Friday.

"The sell down has been conducted in accordance with the New Zealand Stock Exchange Market Surveillance Panel's ruling of 08/08/2001," the company says in a statement.

Lion's most recent attempt to keep its majority holding in Montana was stymied on Monday when the High Court in Auckland refused its request that decisions made by the Montana Standing Committee be reviewed.

After the selldown, Lion will hold just under 44% of Montana.

Allied Domecq has a current offer in the market for Montana shares at $4.80, 15 cents higher than the price Lion Nathan is selling its shares for.

Allied's offer is conditional on reaching a 50% holding in the winemaker. It currently has 27%.

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