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Bond Corp. sells brewing interests.

Bond corp sells brewing interests

In a plan to alleviate the debt burden on Bond Corp. Holdings Ltd., Australian businessman Alan Bond announced the sale of half of his brewing empire.

Under the proposal, Bond Corp. will sell its Australian brewing interests to Bell Resources, where Bond Corp. already controls 58 percent of the operations, for $2.5 billion. The new scheme overrides a previous plan that would have sold both Australian and U.S. brewing assets, including G. Heileman Brewing Co.

Once the sale of the Australian interests is completed, Bond Corp. will make a bid for the remaining 42 percent of Bell Resources it does not already own at about $972 million.

If the bid succeeds, Bond Corp. plans to sell half of its Australian brewing operations to Lion Nathan Ltd., the New Zealand brewer of Steinlager beer. Analysts were not clear on the price Lion Nathan will pay for half of Bond Corp.'s brewery holdings, but said it would include an equity investment of about $550 million in the joint venture between the two companies. Lion Nathan, analysts added, has also agreed to arrange financing for Bond Corp.'s takeover offer of Bell Resources.

The proposal is subject to government approvals and Bond Corp. being able to acquire all of Bell Resources' shares. Some Wall Street analysts have given the deal a 50-50 chance of being accomplished, but they are unclear whether it will be enough to keep Bond Corp. afloat. One analyst, however, believes that the new proposal is "too little, too late."
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Publication:Modern Brewery Age
Date:Sep 25, 1989
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