Lion in A$352m bid for Coopers Brewery

Trans-Tasman brewer Lion Nathan yesterday made a A$352 million ($385.75 million) takeover bid for Coopers Brewery.

The off-market offer of A$260 per Coopers share in cash is not subject to a minimum acceptance condition.

Coopers is an unlisted public company based in Regency Park in South Australia and has about 117 shareholders.

"This is a very compelling offer for Coopers shareholders," Lion Nathan chief executive Rob Murray said.

"Lion Nathan is hopeful of acquiring a significant shareholding in the Coopers business.

"We are offering a demonstrably fair price to acquire shares in Coopers and this is a reflection of the very high regard we have for the Cooper family, the brewery's management and the business and the brands they have built."

Murray said some of the Coopers shareholders had approached Lion Nathan recently with a view to realising fair value for their otherwise illiquid holdings.

A Lion Nathan company, the South Australian Brewing Co, owned 19.9 per cent of Coopers before 1995.

Lion Nathan said its offer represented a 478 per cent premium to the price of a buy-back conducted by Coopers of A$45.01 per share in 2003.

The offer was a multiple of 19.4 times Coopers' earnings at June 30, 2004.

Murray said Lion Nathan would be comfortable with a range of shareholding outcomes. "We expect any holding will be a good investment in its own right," he said.

A Lion Nathan spokesman said there were about 1.35 million Coopers shares on issue.

He said Lion Nathan had been holding talks with Coopers for some months about a takeover but had been unable to reach any agreement.

Murray said Lion Nathan would prefer the Cooper family and the management team to continue their involvement with the business regardless of the outcome.

Coopers' brands include Coopers Original Pale Ale and Coopers Sparkling Ale.

Lion Nathan's brands include Toohey's, XXXX, West End, Hahn, Heineken and Becks, Speights, Lion Red, Waikato, Macs and Steinlager.

Murray said that if it succeeded in acquiring Coopers, Lion Nathan was well placed to continue to drive Cooper's growth nationally through Lion's extensive sales and distribution network.

Lion said it would fund the bid from existing debt facilities.

If Lion Nathan succeeds in the takeover, it is expected that the acquisition would be earnings per share accretive in the first full year post-acquisition. Lion Nathan shares ended up 8Ac at A$8.12.

- AAP