On 14 January 2005, Foster's Group Limited (Foster's) disclosed proposed arrangements with Bob and Sandy Oatley and their investment vehicle, Reline Investments Pty Ltd (Reline), which may apply following a successful takeover of Southcorp Limited (Southcorp). These arrangements are described in the attached letter, which accompanied Foster's initial substantial holding notice.
There has been some confusion in relation to these proposed arrangements. In particular, Southcorp has asserted that the Oatley family will receive benefits that are not being made available to all Southcorp shareholders.
This assertion is wrong and is rejected by Foster's. The proposed arrangements are in no sense concluded or binding and do not confer any benefit or advantage in connection with the acquisition of Reline's shares.
Foster's has discussed the proposed arrangements with the Australian Securities and Investments Commission (ASIC).
Following those discussions, Foster's wishes to confirm that the proposed arrangements are not legally enforceable. They remain expressions of Foster's and Reline's future commercial intentions. The arrangements have at no time been capable of being finalised and that continues to be the position. No detailed discussions have taken place between Foster's and Reline concerning the commercial terms of the proposed arrangements, other than that the parties will negotiate on an arm's length basis.
The proposed arrangements were incidental to the acquisition of Reline's shares in Southcorp by Foster's, but they were in no sense consideration for the acquisition, nor did they involve any transfer of value at any time to Reline.
This release is made with the concurrence of the Oatley family and Reline.
Media
Lisa Keenan
Tel: +61 3 9633 2265
Mob: 0409 150 771
Investors
Michael Roberts
Tel: +61 3 9633 2273
Mob: 0418 263 199
Confirmation of Redline Arrangements (PDF, 140 Kb)
