By DITA DE BONI
Lion Nathan has swallowed Guinness Peat Group's outstanding shares in Montana Group.
The Australia-based brewer had agreed to acquire GPG's stake for 260c a share in August, but was barred from taking its shareholding over 25 per cent before receiving permission from the Overseas Investment Commission.
Late last week
permission was given, clearing the way for Lion to buy the full 15.7 million shares and take its holding in Montana to 28.26 per cent from just over 24 per cent. It is now the largest shareholder in the company, but said recently it did not intend to foray further into the Montana share registry for now.
Montana chairman Peter Masfen, the next largest shareholder in the company, with roughly 21 per cent, has repeatedly said he will not sell his holding and has described other offers for chunks of Montana as "significantly undervaluing" the company.
Montana shares closed yesterday down 3c at 275c. In the past three months the shares have gone from below 230c in value to 279c a week ago.
Consent for Lion to snap up Montana shares follows clearance granted by the Commerce Commission last week for Montana to buy its largest domestic wine producing rival, Corbans Wines. Preliminary due diligence has been undertaken by Montana to purchase the West Auckland winemaker.
But any definitive deal between the two parties is being conducted behind a stony wall of silence by principals of the companies. Both Mr Masfen and DB Group head Brian Blake are refusing to field calls.
A terse comment issued by DB yesterday said the company was continuing with the sale process and expected to make an announcement late this month.
"Until then DB Group does not intend to make any comment or further announcement about any aspect of the sale process."
DB shares closed yesterday unchanged at 327c. The company's shares have also gained steadily in value since DB disclosed that it would find a buyer for Corbans, with stocks sitting at well below 270c around three months ago.
