Analysts puzzle over DB share sale

By Nick Stride

Friday 8th November 2002

DB Breweries' second- largest shareholder, California's Palo Alto, has quietly sold out.

The shares were picked up by Accident Compensation Corporation, which paid $5.94 for 8.41%. Palo Alto now has just 0.11%, with the remaining 1.51% going to unknown buyers.

Analysts are puzzled that DB's majority shareholder, Heineken unit Asia Pacific Breweries, with 76.9%, didn't pick up the stake.

Palo Alto's 10.03% was strategic because it would block APB from going to compulsory acquisition if it decided to make an offer for full ownership of DB.

APB's regional director, South East Asia, Eric Nelissen, said the shares weren't offered to his company. The sale was handled by sharebroker JB Were, which declined to comment.

"We knew they (Palo Alto) were in that position but we haven't been actively pursuing a purchase," Mr Nelissen said.

"We are quite happy with the position we have at the moment."

The $5.94 price compared with a DB closing price of $5.95 the day before.

Brewer DB Group reported a $22.6 million September-year profit, down from $58.3 million in 2001, which was boosted by a $35 million gain from the sale of Corbans Wines to Montana. Earnings before interest and tax were up 0.7% to $30 million.

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