Lion Nathan Offers A$7.6 Billion for Coca-Cola Amatil
Nov. 17 (Bloomberg) -- Lion Nathan Ltd., Australia's second- largest brewer, offered to buy Coca-Cola Amatil Ltd. for A$7.6 billion ($4.9 billion) in cash and stock to create a company selling everything from beer to soda, juice and wine.
The offer, worth A$10.35 a share based on Friday's closing prices, is ``incomplete and non-binding,'' Sydney-based Coca-Cola Amatil said in a statement today. The company is considering the proposal which has a ``number of material deficiencies,'' it said.
Under the bid, Coca-Cola Amatil shareholders would receive A$6.15 a share in cash and 0.469 Lion Nathan shares for each share they own.
Combining the Australian bottler of Coke with the producer of Tooheys beer would eclipse Foster's Group Ltd. as the nation's largest beverages group by sales. The bid is supported by Sydney- based Lion Nathan's largest shareholder, Kirin Holdings Co Ltd.
The offer, 25 percent above Coca-Cola Amatil's price on Friday of A$8.52, is less than recent multiples paid for beverage companies, the Coke bottler said.
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