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Kirin to buy new Lion Nathan shares for Amatil bid

MELBOURNE
Sun Nov 16, 2008 9:11pm EST

Stocks

   

MELBOURNE (Reuters) - Kirin Brewery Co (2503.T) has committed to buy A$3.76 billion ($2.4 billion) worth of new shares in Australian brewer Lion Nathan Ltd LNN.AX to help it fund a proposed takeover of Australia's top soft drinks group Coca-Cola Amatil Ltd (CCL.AX).

Lion Nathan, 46 percent owned by Kirin, made a cash and scrip offer worth A$7.6 billion for Coca-Cola Amatil.

Lion Nathan said on Monday Kirin would help fund the deal by buying up to 327 million new shares in Lion Nathan priced at A$11.50 a share, a 28 percent premium to Lion Nathan's last trade.

If the merger went ahead, Kirin's stake in the expanded Lion Nathan would increase to 47.5 percent.

"It reflects the confidence they have in the prospects of the combined group," Lion Nathan spokesman James Tait said of the premium that Kirin was willing to pay.

"It's based on what we and they think is a fair premium," he said.

($1=A$1.56)

(Reporting by Sonali Paul)


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