By GEOFF SENESCALL
Guinness Peat Group pocketed $10 million in a share transaction which sees Lion Nathan strengthen its grip on the country's largest winemaker, Montana.
In a two-pronged deal, GPG has sold its key 7.3 per cent stake in Montana to Lion, giving the brewer a virtually unassailable 28.27 per cent
shareholding.
Lion's move comes after it notified the market last week that it intended taking its shareholding in Montana to 25 per cent.
At the time the company made no bones about the fact that it was doing this to protect its position.
Lion spokesman Warwick Bryan had indicated that rumours of the Australian wine conglomerate Southcorp being interested in Montana prompted its move.
Its initial lightning raid in May for a 19.9 per cent holding at 230c a share was also on the back of speculation that Foster's and Southcorp were looking at the asset and had apparently been talking to Montana's 21 per cent shareholder and chairman, Peter Masfen.
Of its latest action, Mr Bryan said that while another investor might be interested at that level, "I think it would probably preclude a corporate play. Not totally, maybe, but I think it makes it more difficult."
While Lion has agreed to buy GPG's 15.7 million Montana shares at 260c, it must get Overseas Investment Commission approval to take its holding above 25 per cent.
Lion has therefore underwritten the balance of the GPG holding at 260c while it awaits approval.
Both GPG's New Zealand boss, Tony Gibbs, and Mr Masfen declined to comment on whether they had been approached by other parties.
Mr Masfen said that even at 260c the price was too cheap.
Lion said following the GPG purchase that its average entry price was 238c.
