Shareholders of Fosters Group have strongly voted to approve the demerger of the company into two separately listed companies focusing each on beer and wine. Shareholders met in Melbourne on Friday morning to vote on the board's proposal to demerge the business, to allow each side of the company to focus more effectively on its business.

At the meeting in Melbourne, 98.6 per cent of proxy votes (representing 1.17 billion shares) supported the demerger proposal, with 0.3 per cent of shares voted against
There has been mounting speculation that a foreign firm might be keen on buying Fosters Group. The speculation has been ramped up a notch higher since Foster’s shareholders overwhelmingly voted for the demerger plans. Foreign media reports have indicated that SABMiller, the British drinks major, may be one of the potential buyers of the Australian renowned business.

According to the speculative reports, SABMiller may be keen on acquiring Foster’s beer assets. The Herald Sun reported that Chinese brewery Tsingtao; Dutch major Heineken, Japan's Asahi and North American group Molson Coors had previously also shown interest.

Foster’s will now seek orders from the Supreme Court of Victoria for approval of the scheme of arrangement (Scheme) to effect the demerger at a hearing scheduled for Wednesday, 4 May 2011.

If the Supreme Court of Victoria approves the Scheme, Foster’s proposes to lodge the orders of the Court with the Australian Securities and Investments Commission on 9 May 2011 and the Scheme will become effective on that date.

If this occurs, Treasury Wine Estates Limited is expected to commence trading on the Australian Securities Exchange on Tuesday, 10 May 2011 under the ASX code “TWE”. Treasury Wine Estates Limited shares will initially trade on a deferred settlement basis. The Demerger is expected to be implemented on Friday, 20 May 2011.

According to the Herald Sun, London based SABMiller - which makes Grolsch and Peroni - has long been considered a likely buyer for Foster’s CUB beer division, with reports emerging last year that it was planning a £7 billion bid.

Foster’s CUB division produces Australia's famous Victoria Bitter and Carlton Draught brands.
With a portfolio of over 100 brands, Foster Group is a global premium branded drinks company, delivering beer, wine, spirits and ciders to millions of consumers every day.

1st May 2011