Asahi shows rising interest in rival's local portfolio

Sarah Thompson Anthony Macdonald
Nov 13 2018
AFR

It seems one Japanese beer company’s trash could be another Japanese brewer’s treasure.
Street Talk understands Japan’s Asahi Group Holdings, brewer of the eponymous beer and purveyor of soft drinks and food businesses globally, is lining up for a look at $1.8 billion Australian dairy and juice business, Lion Dairy & Drinks.
Sources said Asahi had tapped investment bank Rothschild for advice and had registered its interest with auctioneer Deutsche Bank.
It would be a particularly interesting move from Asahi, given where the Lion portfolio is coming from. The Dairy drinks business, which counts Dairy Farmers and Dare among its brands, is owned by rival Japanese brewer Kirin.
Kirin has struggled to get the unit firing – as was evident from its third quarter results – and so has hired Deutsche Bank and Greenhill Australia to find a buyer.
Asahi is said to be interested at this early stage, although there is no certainty it will end up tabling a binding offer let alone buy the unit. But the fact it has lined up Rothschild – which has done local work for the brewer previously – shows it is expected to take a serious look.
Asahi will come up against ASX-listed Coca Cola Amatil, advised by UBS and Luminis Partners, Moelis-advised Saputo and Australia’s Bega Cheese, which has house adviser Kidder Williams on hand.
Tyrekickers have been told to expect an information memorandum in late November.
It comes after Lion made its maiden pitch to potential buyers almost a fortnight ago. Lion pitched the portfolio as “Australia’s most iconic dairy and beverage brands with inherent nutritional value”, according to a two page teaser document sent to potential buyers and reported by Street Talk