Coca-Cola Amatil has called off its $A7 billion takeover talks with Lion Nathan, saying its US-based parent has rejected the proposal.
Coca-Cola Company, which owns a 30% stake in Australia-based Coca-Cola Amatil (CCA), has written to Lion Nathan’s major shareholder, Japan’s Kirin Holdings, calling off discussions, CCA says in a statement.
Alcoholic drinks maker Lion Nathan says its proposed $8 billion takeover of Coca-Cola Amatil would yield as much as $130 million in annual savings. The soft-drinks maker, though, has given the scheme of arrangement a cool response.
To finance the $4.5 billion cash component of the bid, Lion Nathan will place 327 million new shares with its major shareholder, Japanese food and beverages giant Kirin Holdings at a price of $11.50 per share. It will also take on $800 million in debt.
The company sought to allay concerns over the influence wielded by Kirin, whose stake would increase to 47.5%, from 46.1%, after the issue of the new shares.