Foster’s Group Limited (Foster’s) today announced its intention to return up to $350 million of capital to shareholders through a combination of an off-market and on-market share buy-back.
Foster’s intends to buy back up to $250 million worth of shares through an off-market buy-back tender process (the Buy-Back). Acquisitions under an on-market buy-back of up to $100 million worth of shares will not commence until the completion of the off-market buy-back tender.
“Strong cashflow performance in 2007, recently completed asset and business sales and continuing confidence in our ability to generate strong operating cash flows will enable Foster’s to return funds to shareholders,” said Foster’s Chief Executive Officer, Trevor O’Hoy.
The capital management program will assist in managing gearing levels and Foster’s capital structure, and is consistent with Foster’s investment grade credit rating.
The decision to include an off-market buy-back within the capital management program follows the success of Foster’s off-market buy-back completed in April 2007, and the Board’s view that the process provides benefits to both participating and non-participating shareholders.
The on-market buy-back will enable Foster's to increase the size of its capital management program in a manner that is consistent with its intention to remain in a position to fully frank dividends for the foreseeable future. It also allows Foster's to return capital at times, and in amounts, consistent with its operating cashflow profile.
Participation in the Buy-Back is optional with tender applications closing at 7:00pm, Melbourne time, on Friday, 12 October 2007.
Foster's has appointed Goldman Sachs JBWere (financial), Corrs Chambers Westgarth (legal) and Shaddick & Spence (tax) as advisers to the Buy-Back.
Further information
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Media Troy Hey |
Investors Chris Knorr |
ASX - $350 million Capital Management Program (PDF, 63 Kb)
