Asahi paid $1.5b for Independent Liquor in 2011, but it is now challenging the financial information it was given by the private equity firms it bought the company from. Photo / Herald on Sunday
Japanese brewer Asahi is seeking "maximum recovery" of the losses it claims it incurred when it purchased Papakura-based Independent Liquor off two private equity firms in 2011, saying those companies allegedly inflated earnings figures during the sale process.
The company, Japan's biggest beer maker, has just confirmed that two of
its subsidiaries - Independent Liquor NZ and Asahi Holdings Australia - have launched proceedings in the Federal Court of Australia in Melbourne today against Pacific Equity Partners (PEP) and Unitas Capital.
The Japanese company purchased the New Zealand firm off the two private equity players for $1.5 billion in September 2011.
Asahi alleges that PEP and Unitas engaged in "misleading and deceptive conduct" by making false representations of Independent's financial position, in particular by inflating its earnings before interest, tax, depreciation and amortisation (ebitda) figures.
The Japanese firm said it was seeking damages from PEP and Unitas "for loss suffered as a result of their conduct in breach of Australian Consumer Law".
