S.A. Liquor Distributors - Panel Publishes Reasons in S.A. Liquor Distributors

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The Panel advises that it has today published its reasons for its decision in the S.A. Liquor Distributors proceedings. The Panel accepted undertakings from Australian Liquor Marketers Pty Ltd (ALM) for further disclosure in its bidder's statement in relation to a takeover bid for S.A. Liquor Distributors Limited (SALD). On the basis of those undertakings the Panel decided to decline to make any declaration of unacceptable circumstances.

SALD had criticised ALM's disclosure in its bidder's statement regarding the future conduct of the business of the target and the defeating conditions of its bid.

Following discussions between the Panel and the parties, the Panel accepted a number of changes and additional disclosures in ALM's bidder's statement. They relate to a number of the defeating conditions in the bidder's statement, and to the benefits which may flow to shareholders in SALD as customers if ALM takes over the supply of liquor to the SALD shareholders.

SALD had also submitted that a customer share incentive scheme, which is described in ALM's bidder's statement, offends the equality of opportunity principle because a proportion of SALD shareholders would not be eligible to participate in the scheme. On the basis of the facts before it in this matter, the Panel did not accept that proposition.

The reasons are available on the Panel's website.

The President of the Panel appointed Jeremy Schultz, Elizabeth Alexander AM, and Anthony Burgess to be the sitting Panel to consider the application.

George Durbridge,
Director, Takeovers Panel
Level 47 Nauru House,
80 Collins Street, Melbourne VIC 3000
Ph: +61 3 9655 3553