Foster's is to increase its share in Foster's Group Pacific Ltd, after signing a deal to buy a 29% stake in the company currently held by Fijian Holdings Ltd for FJD$40m (US$18.2m).

The deal, which values Foster's Group Pacific (FGPL) at FJD13.26 per share, will see Foster's increase its stake in the firm to 89.6%, the Australian beer and wine giant said today (1 May).

FGPL owns and operates breweries and distilleries in Fiji and Samoa, producing and distributing various brands including Fiji Bitter, Fiji Gold and Vailima.

Fijian Holdings approached Foster's with a view to selling its stake in FGPL, said Foster's, which first purchased a stake in FGPL in 1957. 

"By realising its investment in FGPL, Fijian Holdings will be free to re-invest funds in new opportunities," said Fijian Holdings managing director Sereana Qoro.

Foster's CEO Ian Johnston said: "Increasing our level of ownership provides us with greater strategic alignment and flexibility with respect to ongoing investment and management of Foster's Pacific business, particularly through the current business climate."

The deal remains subject to regulatory approval.