Foster's Group Limited (Foster's) today announced its intention to return up to $400 million to shareholders through an off-market share buy-back.
"A combination of asset sale proceeds and confidence in our ongoing ability to generate strong operating cash flows has enabled Foster's to return funds to shareholders," said Foster's Chief Executive Officer, Trevor O'Hoy. "Our balance sheet is strong and, with increasing confidence in the timing of announced asset sales, we believe this is the right time to return funds."
"Factoring in the cash requirements of the proposed buy-back, we remain confident that we are on track to reduce net debt to less than $3 billion by June 2008 - one year earlier than we anticipated at the time we acquired Southcorp," Mr O'Hoy said.
Foster's intends to return a total of approximately $400 million of surplus capital through capital management initiatives in fiscal 2007. As a result, the remaining balance of the $200 million on-market share buy-back announced in August 2006 has been cancelled, effective immediately. As at 19 February, Foster's had purchased 204,000 shares under the on-market program at an average price of $6.40.
Participation in the buy-back is optional with tender applications closing at 7:00 pm, Melbourne time on Thursday 5 April 2007.
Foster's remains committed to achieving metrics consistent with a BBB+ (Standard & Poors) and Baa1 (Moody's) credit rating by the 2008 financial year.
Foster's has appointed ABN AMRO (financial), Corrs Chambers Westgarth (legal) and Shaddick & Spence (tax) as advisers to the buy-back.
For further information please contact:
Media
Troy Hey
Tel: +61 3 9633 2085
Mob: 0409 709 126
Investor
Chris Knorr
Tel: +61 3 9633 2685
Mob: 0417 033 623
ASX - Foster's announces $400 million off-market share buy-back
