Australia: Foster’s Group Ltd., Australia's biggest beer maker, said the A$203 million (US$161 million) sale of its Kent Brewery site in Sydney to Australand Holdings Limited fell through. Foster’s Group Limited announced on March 17 that it’s Australian beer, cider, spirits and non-alcohol division Carlton and United Beverages (CUB), would pursue an alternative approach to the sale of its Kent Brewery site in NSW.
Foster’s said in a press release that in September 2003 CUB signed a conditional agreement to sell the Kent Brewery site to Australand Holdings Limited. The gross proceeds of the sale amounting to A$203 million were due in instalments from June 2005, when development approvals were expected, to 2010. After extensive consultation, Australand Property Group and CUB have elected to mutually rescind their contractual arrangements. CUB and its property advisers will now seek greater certainty around potential planning outcomes for the site before proceeding with any sale process. CUB will continue to work with all stakeholders to ensure the best outcome for the site.
Australand said the costs incurred by it to date for design and other costs in respect of the project were about $4 million after tax and would be expensed in Australand's June 2005 half-year results. "This amount is not material and will not impact on forecast 2005 distributions of at least 16.5 cents per stapled security as previously announced," Australand said.
Foster's shares were four cents lower at $5.33 on March 17. Australand securities were steady at $1.74.
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