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Elders' price to Asahi gets cut.

Elders' price to Asahi gets cut

Harlin Holdings, parent company of Elders IXL in Australia, has agreed to accept nearly $150 million less than originally negotiated in a deal to sell part of its brewing stake to Japan's Asahi Breweries.

Under the new agreement, Harlin will sell about 17 percent of its holdings to Asahi for approximately $584 million. Asahi had previously planned to purchase a 19.9 percent stake in the company for $740 million. In addition to the 17-percent purchase, Asahi said it will make a 2.9 percent purchase on the open market to bring its holdings up to the 19.9-percent mark.

Due to Harlin's reported $1.5 billion worth of debt, the company was forced to renegotiate the deal because of Asahi's concern with dropping share price just after the acquisition announcement.

The deal will go through only after it receives approval from regulators and "other necessary approvals," Harlin said.
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Title Annotation:Harlin Holdings Proprietary Ltd. sells Elders IXL Ltd. to Asahi Breweries Ltd.
Publication:Modern Brewery Age
Date:Oct 29, 1990
Words:155
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