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Lawyers brew on Foster's demerger
Beverage giant Foster's announced this week that it was splitting its listed beer and wine companies._x000D_
The New Lawyer
BEVERAGE giant Foster’s announced this week that it was splitting its listed beer and wine companies.
Law firm Corrs Chambers Westgarth is advising Foster’s Group on all aspects of the proposed demerger. Foster’s announced its decision to pursue a structural separation to create separate stock exchange listings for beer and wine this week, following what Corrs labelled a significant progress with Foster’s Transformation Agenda. The move is a “logical next step” following structural splitting of the company’s sales and marketing functions last year, the company said. It said the demerger was unlikely to be implemented until the first half of 2011 at the earliest. Foster’s said the split is expected to result in savings of at least $100million per year from next year. The Agenda, announced in conjunction with the company’s Wine Review Strategy in February 2009, includes the appointment of new senior management to the wine and beer businesses, implementing stand-alone organisational structures across beer and wine and re-shaping the wine portfolio including brand rationalisation. The proposed demerger is subject to detailed evaluation of the issues, costs and benefits to Foster’s shareholders and ongoing assessment of prevailing economic and capital market conditions. Partner Braddon Jolley is leading the Corrs team advising on the transaction, which includes partners Justin Fox, Jeremy Davis, Sandy Mak and Reynah Tang.
