Asahi Group has reached a settlement on the legal dispute

Asahi Group has reached a settlement on the legal dispute

Asahi Group is to receive NZD220m (US$175m) in compensation after settling a legal dispute with the former owners of its New Zealand unit, Independent Liquor (IL). 

The case dates back to February last year when Asahi's Australian unit launched a lawsuit against private-equity groups Pacific Equity Partners and Unitas Capital. The lawsuit alleged that IL's former owners had falsely represented its financial position. Pacific Equity and Unitas denied the charges. 

In a statement yesterday, Asahi said a settlement had been reached with the private-equity groups and it will drop its claims on receipt of NZD220m. 

The Japanese group reportedly wrote down the value of IL by AUD464m (US$440m) in October last year

Looking ahead, the Japanese group said it expected to record “extraordinary” income during the financial year, but that it was not changing its forecast. “We intend to consider and implement reduction/reassessment of our assets through implementing asset streamlining measures... and revisiting the future plans mainly of our overseas subsidiaries,” the company said.