Canada: Sleeman’s shares go significantly up
Shares of Sleeman Breweries Ltd. jumped more than 12 percent on Monday, May 15, after Canada's third largest beer brewer said it was reviewing its options, including the possible sale of the company, Reuters informed May 15.
Guelph, Ontario-based Sleeman said late on May 12 that it has hired investment bank BMO Nesbitt Burns to help it review strategic alternatives.
Sleeman brews and sells a number of its own premium brands and also markets and distributes several well-known import labels in Canada including Guinness, Grolsch and Scottish and Newcastle. Its stock was up C$1.61, at C$15.01 on the Toronto Stock Exchange on Monday afternoon.
The brewer's announcement on Friday, May 12 came after its stock surged 15 percent during the session amid takeover rumors.
Sleeman, which has been hit by fierce price competition in the past year, had sales of C$206.7 million in fiscal 2005 and a market capitalization of about C$251 million.
The brewer, which is estimated to have a 6 percent market share in the Canadian beer market, competes against Canada's two biggest brewers, Molson and Labatt, which is controlled by beer giant Belgian InBev.
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