Kirin prepares to swallow Lion Nathan

The agreement allows Japanese brewer Kirin to acquire all shares in Lion Nathan. Photo / Brett Phibbs

Transtasman brewer Lion Nathan has signed an implementation agreement with Kirin Holdings enabling the Japanese brewer to acquire the shares in Lion Nathan that it does not already own.

Kirin will acquire the remaining 53.87 per cent of Lion Nathan shares for A$12.22 ($15.59) per share. The price includes A$11.50 per share to be paid by Kirin and another 72c per share to be paid by Lion Nathan as a fully-franked cash component.

The transaction will be implemented via a scheme of arrangement and is subject to conditions.

For the deal to succeed, it requires at least 75 per cent support from non-Kirin shareholders of Lion Nathan at a scheme meeting.

Lion Nathan said its shareholders would receive documentation on the offer in due course.

It anticipated the scheme meeting would be held in September or October.

On April 27, Lion Nathan's independent directors agreed to a deal for Kirin to acquire the shares for the equivalent of A$12.22 each.

The deal values Lion Nathan at A$6.5 billion on an equity basis and A$8.2 billion on an enterprise basis, which includes debt.

- AAP / NZPA