Share Tips Australian Stock News
Posted by Admin in news, recommendations.
Share Tips Australian Stock News
In Australian Stock news, Fosters Group plans to demerge beer from its underperforming wine operations, with separate listings for the two arms, was well-received.
Strategically, splitting the operations into two businesses is appealing. There will be short-term negatives associated with the demerger, including a non-cash pretax impairment charge of up to $1.3 billion as well as dividend issues (such as timing and payment).
However, the demerger makes strategic sense and is likely to be a positive for FGL going forward. It may even open up an opportunity for a takeover of FGLs beer operations, as the global brewing sector is in a consolidation phase.
In terms of it being one of the shares to buy, the generally defensive nature of FGLs business, and revenues, is the companys major appeal in the current climate, as it manages to draw in consumers owing to its famed brand names.
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