DB buy-up rejected

By Phil Boeyen, ShareChat Business News Editor

Monday 12th November 2001

Brewer DB Group's (NZSE: DBG) major shareholder, Asia Pacific Breweries, has refuted media claims that it plans to approach minority shareholders to buy their stakes in the Auckland-based company.

The weekly newspaper NZ Business Times last week reported that APB was considering approaching minority DB shareholders, including Palo Alto, to buy shares.

However an APB regional director, Eric Nelissen, says the report is inaccurate and out of context.

"APB and its substantial shareholder Heineken have no plans to approach any minority shareholder, including Palo Alto, and is presently satisfied with its existing equity level.

"However, if there are willing sellers at attractive prices, APB is prepared to consider the possibilities."

Singapore-based APB is a joint venture between Fraser and Neave and Dutch brewing giant Heineken. The company operates breweries throughout Asia and makes one of the region's top selling beer brands, Tiger.

APB last made a takeover offer for DB Group at the beginning of 2000 at $2.80 per share, but an appraisal report found the offer was at least 40 cents below their valuation of the company and DB's directors consequently advised shareholders to reject the takeover.

APB refused to increase its bid but received acceptances from more than 4,000 shareholders in March last year to lift its holding to around 75%. It added another 2% in June through on-market transactions to take its total stake to just under 77%.

Following the failed takeover bid DB Group sold its Corbans wine business to Montana and made a capital reduction, cancelling half of its shares on issue and repaying $151 million to shareholders.

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