Australia: Coopers Brewery has closed its share buyback

Coopers Brewery from Australia, which has managed so far to resist a A$420 million (US$316.6 million) hostile takeover bid from Lion Nathan Ltd, has closed a share buyback, with shareholders willing to part with only a small %age of their stock, Asia Pulse informed on January 16. Coopers said that under the buyback approved by shareholders in December 2005, the company had offered to buy back up to 15 % of Coopers shares.

But at the close of the buyback only 4.26 % of shares had been offered to the company. "The fact that just 4.26 % of Coopers shares have been put into the current share buyback process indicates that shareholders are happy with the way the company is being managed and is a gratifying response," Coopers managing director Tim Cooper said.

When the buyback closed last week, about 57,600 Coopers shares worth just under A$15 million - at A$260 per share - were put up for sale. Coopers launched the buyback to match Lion Nathan's initial takeover bid of A$ 260 per Cooper's share.

Lion Nathan later lifted its bid to A$310 per share, but the Lion Nathan bid was effectively defeated when Coopers shareholders voted to withdraw Lion Nathan's pre-emptive rights to buy Coopers stock. Nevertheless, Lion Nathan is pursuing legal action in a bid to breathe life back into the bid, which still remains open.

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