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Fuller,Smith & Turner To Sell Beer Business To Asahi Europe For 250 Mln Stg


Friday, 25 Jan 2019 02:15am EST 

Jan 25 (Reuters) - Fuller Smith & Turner PLC ::DISPOSAL AND TRADING UPDATE.PROPOSED DEAL FOR ENTERPRISE VALUE OF £250 MILLION ON A DEBT FREE, CASH FREE BASIS.NET CASH PROCEEDS OF PROPOSED DISPOSAL ARE EXPECTED TO BE APPROXIMATELY £205 MILLION AT DEAL COMPLETION.ENTERED INTO AN AGREEMENT FOR SALE OF ITS ENTIRE BEER BUSINESS TO ASAHI EUROPE LTD.UNDER TERMS OF PROPOSED DISPOSAL, AEL WILL ACQUIRE BRANDS OF BEER BUSINESS.A RETURN OF DEAL PROCEEDS BETWEEN £55 MILLION TO £69 MILLION OF NET CASH PROCEEDS EXPECTED TO BE DISTRIBUTED TO ORDINARY SHAREHOLDERS.PROPOSED DISPOSAL IS NOT ANTICIPATED TO IMPACT LEVEL OF DIVIDEND PAYMENTS.BOARD ALSO INTENDS TO USE SOME OF NET CASH PROCEEDS TO MAKE A CONTRIBUTION TO PENSION SCHEME.AEL TO ACQUIRE BRANDS OF BEER BUSINESS,LICENCE, ON PERPETUAL, GLOBAL, EXCLUSIVE, ROYALTY-FREE BASIS, TO USE CERTAIN TRADE MARKS.OWNERSHIP OF LICENSED TRADE MARKS WILL BE RETAINED BY FULLER'S.LIKE FOR LIKE SALES IN MANAGED PUBS AND HOTELS HAVE RISEN 5.6 PER CENT IN LAST 10 WEEKS.FOR 42 WEEK PERIOD, LIKE FOR LIKE SALES IN MANAGED PUBS AND HOTELS HAVE RISEN 4.7 PER CENT.LIKE FOR LIKE SALES FOR DECEMBER ROSE 8.7 PER CENT AND OUR PRE-BOOKED COVERS ROSE BY 16 PER CENT.LFL PROFITS IN TENANTED INNS ROSE 2 PERCENT, TOTAL BEER AND CIDER VOLUMES IN FULLER'S BEER CO REMAINED LEVEL FOR 42 WEEK PERIOD.SAYS "WE ARE IN AN UNCERTAIN AND CHALLENGING CONSUMER ENVIRONMENT".