E-Malt.com News article: 976

The Board of Scottish & Newcastle ("S&N") published a series of announcements on April 28, 2003. The Group intends to make a full disposal of its Managed Retail business of 1,450 pubs, restaurants and lodges.

The Group is in advanced stages of negotiation to acquire full control of Sociedade Central de Cervejas (“SCC”), the Portuguese brewer in which the company currently has a 49% stake. In addition, S&N is in advanced negotiations to acquire the associated water business – Sociedade da Agua de Luso (“SAL”).

The boards of S&N and HP Bulmer Holdings plc (“Bulmer”) have announced the terms for a recommended offer for the shares of Bulmer.

The Group intends to maintain its dividend policy for the year just ended, and re-base the dividend to two thirds of its current level thereafter to reflect the transformation of the Group’s earnings base.

Trading for the year to April 2003 is in line with expectations.

“These announcements confirm S&N’s position as a powerful and focused force in international brewing,” the company said. S&N has strong market positions across Europe; leadership in three out of the top six beer markets, the UK, France and Russia. It owns an outstanding brand portfolio including three of Europe’s top ten brands, Foster’s, Kronenbourg, and Baltika. S&N is in balanced business with strengths in high value, developed markets in Western Europe, and higher growth markets in Eastern Europe. Strong distribution platforms are covering a population of more than 350 million people across Europe, according to S&N press release.

S&N chairman Sir Brian Stewart said: "The developments announced today represent important steps in the transformation of Scottish & Newcastle, and are in the best interests of all the Group's businesses and its shareholders. Scottish & Newcastle will become a focused international brewer with a portfolio of strong brands and excellent distribution platforms in many of Europe's best beer markets. The two developments announced today in Portugal and the UK demonstrate that there are many exciting and value-creating opportunities to strengthen our beer businesses."

He went on: "The decision to sell our managed retail business is the right one for shareholders and the business. It has become clear in recent months that the managed retail sector is ready to undergo significant change and consolidation. By leading this process in a clear way, S&N will deliver most value for its shareholders, and offer Bob Ivell and his highly regarded management team the best opportunity to play a leading role in the future development of the sector."


29 April, 2003