Billionaire Graeme Hart is thought to be looking at Australia's second biggest beer company, Lion Nathan, or paper and packaging giant Amcor, for his next multibillion-dollar deal, Australia's Business Review Weekly (BRW) reports.
It said that Mr Hart could afford either company because his 56 per cent-owned Burns Philp had
more than A$2.5 billion ($2.8 billion) in cash and was about to raise another A$1.2 billion to A$1.7 billion from the sale of its Uncle Tobys and Bluebird cereal and snackfood business.
Once Hart sold Uncle Tobys, Burns Philp would have no operating assets other than a 20 per cent stake in Goodman Fielder.
The business magazine said that at the same time, Mr Hart's private investment vehicle, Rank Group, was mapping out a plan to achieve 90 per cent control of Carter Holt Harvey and compulsorily acquire the remaining shares.
"Hart recently delisted Carter Holt Harvey from the Australian Stock Exchange and needs 3.5 per cent to go to compulsory ownership," the magazine said. "Then he can delist it in New Zealand and privatise it".
BRW reported Mr Hart's private jet has been parked at Sydney Airport for the past few weeks and returned to New Zealand on January 26, and that much of the billionaire's time in Australia had been spent analysing a few underperforming companies on that side of the Tasman.
It said Mr Hart had previously been interested in Foster's Group, but "he could not get his head around its wine business".
"Now the talk is that he is assessing Amcor and Lion Nathan, both of which fit his criteria of being in a duopoly, performing below market expectations, and being in desperate need of an overhaul," the magazine said.
It noted pulp and paper prices, one of the most important influences on Amcor's and Carter Holt Harvey's earnings, were low but expected to improve.
Amcor was also suffering from a battered reputation after allegations of price fixing in Australia, rising costs, too many non-core businesses dragging down earnings and a need for better capital management.
Lion Nathan had also had problems, including a failed takeover of Coopers Brewery in South Australia, and if Mr Hart could persuade Japanese brewer Kirin, which controls 46 per cent of Lion Nathan to sell, it would make the rest of the takeover easier, and the brewer could provide him with a stable cashflow.
- NZPA
