Report values Montana upwards

By Phil Boeyen, ShareChat Business News Editor

Tuesday 12th December 2000

An appraisal report on Montana (NZSE: MON) shares claims the prices being offered by the company's executive chairman Peter Masfen and brewing giant Lion Nathan (NZSE: LNN) are not fair to shareholders.

The report, from PricewaterhouseCoopers, has been prepared in relation to the two Restricted Transfer Notices issued both by Mr Masfen's company, Masfen Holdings, and Lion Nathan. Both companies have offered to buy Montana shares between $3.20 and $3.80.

In the appraisal report, PricewaterhouseCoopers says it has assessed that the fair value of Montana Group is between $4.16 and $4.64 per share.

Montana's independent directors, who commissioned the report, say they unanimously agree that the price range specified in the notices from Lion and Masfen Holdings is not fair to Montana shareholders.

The directors say they don't intend to sell the shares they own or control in Montana Group at prices within the price range indicated by Lion and Masfen Holdings, and have recommended that shareholders do not do so either.

Late last week Lion received regulatory approval to take its stake in Montana to 100% if it so wished.

While Lion's play for the wine maker fits in with its goals to broaden its investment base, Mr Masfen has not yet fully explained his game plan to other Montana shareholders, leading to speculation that he is trying to force up the price of the company's shares.

Montana shares closed today up 8 cents at $3.88.

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