CANADA: Russell Breweries, Fort Garry agree acquisition extension
Russell Breweries has extended its acquisition deadline for Fort Garry Brewing Company in Canada.
The two brewers confirmed yesterday (5 September) that the deadline for Russell Breweries to buy Fort Garry has moved from 30 September to 22 October. The deal offers Fort Garry shareholders the choice of a direct share swap for Russell Breweries shares, half a Russell Breweries share plus C$0.20 cash, or a straight cash offer of C$0.40 per share.
Russell Breweries also said that it has a lock-up agreement with ENSIS Growth Fund, which owns a substantial stake in Fort Garry. The fund, which owns 1.1m common shares of Fort Garry, representing approximately 21.5% of the outstanding common shares and 628,305 preferred shares, will vote in favour of the purchase as part of the agreement.
The transaction has received conditional approval from the TSX Venture Exchange in Canada and will be subject to Fort Garry shareholder approval.
Based in British Columbia, Russell Brewing's portfolio includes Russell Cream Ale, Russell Pale Ale and Russell Honey Blonde Ale.
Sectors: Beer & cider
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