News
Issue No. 9 - February/March 2003
Wine World BRL Becomes World Wine Headquarters - at $10.50 per share
BRL Hardy Limited looks likely to become the basis for the world’s largest wine business under an AUD$1.9 billion merger proposal announced in January by major US-based beverage alcohol company, Constellation Brands.
Under the merger plan, BRL Hardy and Constellation Brands wine operations will be grouped in a distinct division — Constellation Wines—within the Constellation Brands group.
Claimed to be the world’s largest wine business, Constellation Wines would have nine key operating divisions around the world and total annual wine sales of more than AUD$3 billion.
The Constellation proposal will offer BRL Hardy shareholders $10.50 per share; no final dividend will be paid.
A cash offer is also proposed for all BRL Hardy optionholders, based on the $10.50 per share offer price.
The $10.50 per share offer represents a premium of 37% to BRL Hardy’s closing ASX price of $7.67 on Monday 13 January 2003, the day before the merger discussions were announced to the ASX.
It also represents a premium of 52% to the volume weighted average price of BRL Hardy shares for the two months to 13 January 2003.
Making the formal merger announcement, BRL Hardy’s Chairman, John Pendrigh said there would be no structural changes to BRL Hardy’s Australasian operations.
“BRL Hardy’s founding Managing Director, Mr Stephen Millar, will assume the role of CEO Constellation Wines, based in Adelaide ...
