SABMiller's Foster's Application Rejected by Takeover Panel

The Panel concluded in a statement that “there was no reasonable prospect that it would make a declaration of unacceptable circumstances in relation to the Financial Objectives Statements."

Sep 9 2011 --- Australian beer company Foster's has welcomed the decision by the Takeovers Panel not to commence proceedings in response to the takeover application by SABMiller dated 1 September 2011.

The Panel concluded in a statement that “there was no reasonable prospect that it would make a declaration of unacceptable circumstances in relation to the Financial Objectives Statements. The Panel had some concerns with the Net Debt Statement; however, these concerns were allayed by Foster’s volunteering to make an announcement clarifying the basis for reaching a pro forma net debt figure. Accordingly, the Panel declined to conduct proceedings.”

Foster’s strongly rejected SABMiller’s allegations.

Foster's stands by the content of its 2011 Full Year Results Presentation. Foster's takes its obligation to provide accurate and timely disclosure to the market seriously.

Following consultation with the Takeovers Panel, Foster’s volunteered the following clarification to the Full Year Results Presentation released on ASX on 23 August 2011.

In slide 27 of the Full Year Results Presentation, Foster’s outlined the impact of the Ashwick tax litigation by way of an illustrative pro forma adjustment of its net debt position as at 30 June 2011.

The total cash refund and interest expected to be received from the Australian Taxation Office regarding the Ashwick tax losses is approximately $390 million. As at 30 June 2011, Foster’s had received $211 million from the Commissioner (to date, Foster's has received $361 million).

In addition to the refund from the Australian Taxation Office, tax savings will be realised as accumulated tax losses of $1,491.6 million are offset against Australian taxable income subject to compliance with conditions for deductibility under Australian tax law. Foster's has booked a deferred tax asset of $447.5 million as at 30 June 2011 in relation to the carried forward Ashwick tax losses. The cash flow benefits of this deferred tax asset are expected to be realised over the ensuing 2 to 3 years subject to Foster's generation of taxable income, Foster’s reported.