DB stifles agm debate

By DITA DE BONI

There were few questions and even fewer answers given about DB Group's looming takeover at the company's annual meeting at Ellerslie Racecourse yesterday.

The current takeover bid by majority shareholder Asia Pacific Breweries Ltd (APBL) enticed almost 1000 shareholders to attend what may be the last meeting of DB in its current structure.

But the company's board stymied debate by instructing the audience that group managing director Brian Blake would not answer questions on the bid, saying DB's official response is being held over until the auditors' report and director's recommendations are made public on February 21.

Even question time with APBL's Southeast Asia and Oceania Regional director Siep Hiemstra following the main meeting revealed little about how shareholders viewed the 288c share bid.

Instead, Mr Blake reminded shareholders that last year's reduced performance - sales were down from $661.2m in 1998 to $637.6m in 1999, while net surplus dropped from $24.6m to $11.7m - could be attributed to restructuring, a continuing recovery from 1998's "price war" among brewers and the proliferation of almost 13,000 liquor licences last year in a declining domestic beer and spirits market.

He reiterated DB's "long-term commitment to our core businesses, beer and wine, where we have long-term ownership of the brands we are building."

Speaking after the meeting, APBL's Mr Hiemstra quashed rumours that Corbans Wines would be divested pre-takeover, saying that although APBL had been approached with offers of interest for the label it would not look at shedding the business "for the meantime."

Mr Hiemstra said APBL would take a closer look at the production side of the Corbans business.

On the brewing front, Mr Hiemstra would not comment on the activities of Heineken in Australia, and said there were no current plans to supply the Australian market out of New Zealand.

DB Group shares closed yesterday at 273c, up 1c. The 280c plus 8c dividend offer is extended to DB shareholders until March 27.

APBL, formerly Malayan Breweries Ltd, first invested in DB Group in 1991 and has since grown its shareholding to a majority interest of 58.4 per cent.

The Singapore-listed company, with revenues of $NZ1.6 billion and after-tax profits of $NZ62.3m last year, manages or has substantial equity in 15 Asia-Pacific breweries.