Russell Breweries target of takeover bid from minority shareholder
Premier Diversified Holdings Inc. is seeking to buy up to 51% of Russell's shares.
Food & Beverage
VANCOUVER — Russell Breweries is the target of a takeover offer from Premier Diversified Holdings Inc., which recently acquired a significant minority stake in the regional beer maker.
Premier says it would exchange one of its common shares for every 2.5 shares of Russell, which is headquartered near Vancouver in Surrey, BC.
Based on the June 25 closing prices of the two stocks, Premier says its offer is 36.7% above the Russell market price.
Premier says it currently owns 16.7% of Russell’s outstanding shares and has a lockup agreement for another 2.29%.
It’s seeking to buy up to 51% of Russell’s shares but doesn’t plan to change its business or acquire full ownership.
Russell Breweries produces beer in BC and in Manitoba, where it owns Fort Garry Brewing Co.
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