Independent Liquor sale is brewing

The process for the possible sale of the late Michael Erceg's Independent Liquor is warming up, with potential bidders receiving an information memo on the business.

The Australian Financial Review has reported that documents began circulating this week which suggest Independent will increase earnings before interest, tax, depreciation and amortisation by 15 per cent to A$105 million ($120 million) in 2006-07. Lion Nathan, Coca-Cola Amatil and Foster's were reportedly among those given the memo, while private equity players were also said to be interested.

UBS, which is managing the process for Independent, confirmed yesterday a memo on the business was being circulated to potential bidders. Independent's New Zealand accounts are not made public.

An Australian source said yesterday there was a lot of sensitivity about keeping the memo confidential.

The latest development comes after Independent finally announced last month that the process for possible sale was under way. It was expected to take up to four months.

The announcement coincided with the Commerce Commission clearing Lion to buy Independent but the brewer is yet to say whether it is definitely planning a bid.

A price tag of between $700 million and $1.2 billion has been floated by commentators since Erceg died in a helicopter crash last November.

One Australian analyst has suggested just under $1 billion would be more acceptable to Lion, because of issues around integrating Independent into Lion's more "corporate" culture.