Asahi deal could bring Erceg $175m

Independent has made an impact in the youth drinking market with its ready-to-drink brands such as Woodstock. Photo / APN

Rich Lister Lynne Erceg looks set to end the family's role in the New Zealand liquor industry with Japanese brewery giant Asahi offering a deal.

The offer values Independent Liquor at $1.5 billion, including debt. If Erceg's 11.75 per cent stake is sold it would deliver her about $175 million.

The Papakura-based firm was founded by Michael Erceg in 1987 and took a stake in a liquor industry otherwise dominated by Lion Nathan and DB Breweries.

Independent made a significant impact in the youth drinking market with "RTDs" - ready-to-drink mixes such as leader Woodstock. Beer brands include Kingfisher, Carlsberg and NZ Pure.

Michael Erceg died in a helicopter crash in 2005. Pacific Equity Partners and Unitas bought 80 per cent of Independent Liquor in 2006.

A 100 per cent sale would entrench the overseas - particularly Asian - ownership of the New Zealand liquor industry that started with local interests. Lion Nathan is owned by Japanese brewer Kirin, and consequently Mitsubishi. DB is owned by Asia Pacific Breweries, with Heineken and Fraser & Neave each holding 40 per cent. Kirin is a significant shareholder in Fraser & Neave.

Yesterday, parties declined to comment on the Independent Liquor sale Asahi is expected to tie up this month.

Japanese brewers have been on the acquisitions trail to boost revenue, with limited growth potential exacerbated by natural disasters in the country.

In Australia, Asahi has taken a stake in Schweppes for A$1.2 billion, and is close to completing its purchase of Charlie's for $129 million.

It is understood that private equity owners actively sought investors to take a 20 per cent stake in Independent - with the suggestion that it providing capital to build the firm.

Asahi is buying into a tight liquor market. Lion Nathan's results released last week show Lion's beer, spirits and wine volumes in New Zealand remained stable and revenues increased 4.4 per cent to $356.6 million.