BREWING giant Fosters has announced plans to separate its beer and wine interests into two businesses, each with their own stock exchange listings.
Chief executive Ian Johnston said the demerger would depend on a detailed evaluation of the issues costs and benefits to shareholders and was unlikely to take effect until next year.
''We are increasingly seeing the benefits of operationally separating the beer and wine businesses,'' Mr Johnston said in an statement to the Australian Stock Exchange today.
''While the beer and wine businesses are market leaders, they operate in separate market segments with different strategic and operating characteristics.
''Mr Johnston said the potential benefits of a demerger included greater investment choice for shareholders and flexibility for the boards to develop their own strategies.Potential issues include financing costs, corporate cost and one-off implementation costs.
''We will proceed as quickly as possible, but priority will be given to ensuring all relevant matters are carefully and rigorously examined with the intention of continuing to grow our businesses and minimising disruption to our customers, employees, suppliers and other stakeholders,'' he said.
''Foster's wine business is showing signs of growth but continues to be impacted by oversupply in Australia, subdued consumer demand in key international markets and a strong Australian dollar during the 2010 financial year.''
The company expected earnings before interest, tax, self-generating and regenerating assets and significant items of $1.05 billion to $1.08 billion for the year ending June 30.
It said total dividends would be about the same as previous years, but the timing and payment of dividends in the next 12 months would probably change as a result of a non-cash impairment charge of $1.1 billion to $1.3 billion pre-tax on the carrying value of its wine assets in 2009-10.
