Lion Nathan raises offer for Coopers

SYDNEY - Lion Nathan Ltd has increased its takeover offer for South Australian brewer Coopers Brewery Ltd to A$310 ($334) per share, valuing the equity in the company at A$420 million.

In September, Lion Nathan offered A$260 per share for Coopers, a deal that was rejected by the Coopers board.

Lion Nathan, which produces beers such as Tooheys, XXXX and Hahn, has said that Coopers shareholders can also retain the A$3 per share final dividend declared by the Coopers board on September 30.

Lion Nathan said the offer is not subject to a minimum acceptance condition.

Lion Nathan said the offer was 19 per cent higher than the proposed Coopers share buyback price and was at the midpoint of the Independent Expert's value range of A$284 to A$320 per share.

Lion Nathan said it had reviewed Coopers' 2004/05 financial results and that "this had enabled us to make a very attractive revised offer to all Coopers shareholders which we expect will be unanimously recommended by the Coopers board".

Lion Nathan says it now expects the Coopers board to recommend shareholders vote against any proposal to remove Lion Nathan's rights from the Coopers' Articles and to withdraw the proposed share buyback at A$260 per share.

"We consider that it is now very clear that both the proposed resolution to remove Lion Nathan's rights ... and the proposed share buyback are not in the best interests of Coopers shareholders and we would expect the board of Coopers and especially the independent director to take all necessary steps to ensure that its shareholders are given the opportunity to receive and accept Lion Nathan's attractive and demonstrably fair offer," Lion Nathan chief executive Rob Murray said.

Lion Nathan said its offer is scheduled to close on February 28, 2006.

Last week, Coopers said that a federal court injunction stopping it from trying to remove Lion Nathan's pre-emptive rights to buy Coopers shares had been lifted and that the company would hold an extraordinary general meeting in Adelaide on November 29 to vote on the issue.

Lion Nathan was granted pre-emptive rights by Coopers in 1995 in exchange for Lion Nathan's 19.9 per cent stake in Coopers at that time.

- AAP