George Weston mulls buy back - Company News - possible George West Foods buy back of shares - Brief Article

Eurofood, July 4, 2002

George Weston Foods has seen its shares jump on speculation that it is about to buy out its minority shareholders.

Australia-based George Weston is 81% owned by UK food group Associated British Foods (ABF).

George Weston released a statement saying, "The matter is at a preliminary stage, and subject to receipt of an independent valuation which the company has sought from a major accounting firm, and rulings which have been sought from the Australian Taxation Office."

Under the proposed buy back, minority shareholders would receive a combined cash payment and a franked dividend.

Other reports from Australia have mooted the idea that ABF may buy the remainder of the Australian baker itself. George Weston is currently valued at some AU$810m (481.3m [euro]), with the targeted minority stake worth around AU$150m.