Coopers says it’s worth AUD 500 million

Australia’s third-largest brewer, Coopers Brewery, has valued itself at around AUD 500 million (USD 464 million) as it prepares to undertake another share buyback. Media report that shares in the company are worth AUD 357 each. Not bad for a brewer that sells around 750,000 hl beer.

This puts the value of the business AUD 80 million higher than was offered by the Australian brewing giant Lion in a bitter takeover battle that ended in 2005 when family shareholders voted against selling out.

That offer of AUD 310 per share included a handsome takeover premium and valued Coopers at the time at AUD 420 million.

Coopers’ Managing Director Tim Cooper confirmed recently that Coopers’ shares had been valued at AUD 357 each in a dividend re-investment plan and share purchase plan undertaken by the brewer in June.

Coopers is an unlisted public company and Dr Cooper said subject to board approval there would be another share buyback undertaken in February and March 2015.

“It’s really there to offer people a liquidity opportunity,” he was quoted as saying.

Coopers undertook a share buyback in February and March, and Dr Cooper said it would remain a regular feature of Coopers’ capital management approach.

He said share buybacks over the past few years have resulted in the total shares on issue being trimmed back to about 1.15 million, from around 1.4 million when Lion launched its bid. The Lion bid was originally pitched at AUD 260 per share, and later increased to AUD 310 per share.

Coopers reportedly generated beer sales volume growth of 8.1 percent in the year through June 2014. It has a national market share of 4.5 percent.

Coopers became the last big Australian-owned beer group in 2011 after Carlton & United Breweries (CUB) was bought out by SABMiller in its takeover of Foster’s.