Elders beer float prospects brighter

Press, 27 June 1989, Page 25

Elders beer float prospects brighter

NZPA-AAP

The chairman of Elders IXL, Mr John Elliott, expects an agreement by the Canadian Government this week on the proposed merger of the Carling O’Keefe brewery with Molson Cos, clearing another hurdle for the international float of his massive beer-making division. Plans to take the brewing business public had been stalled by the decision in Canada and haggling with the British Government over the sale of 13 per cent of its Scottish and Newcastle Breweries stake. Mr Elliott revealed the British authorities had now extended the deadline by three months to the end of June, 1990, for the reduction of the 23 per cent holding it took in S. and N. during its abortive takeover bid earlier this year. He said they now awaited the outcome of the Canadian Government’s investigation into the merger of Elders-owned Carling O’Keefe’s North American brewing operations with Molson Cos, but added: “We are confident we are going to get a favourable decision on that.” The brewing float was "still on” once the two deals had been sorted out, Mr Elliott told the "Business Sunday” programme. "There is no doubt we’ve been stalled a bit this year, and had to delay any thought of flotation,” Mr Elliot said. “Our brewing business made over sAustsoo million (SNZ6SBM) before interest and tax last year, and depending on the amount of gearing it would be a very significant float.”