Chris Shanahan: Lion devours Little Creatures

Lion, the Australasian arm of Japan’s Kirin Brewery, is to acquire ASX-listed Little World Beverages – owner of Little Creatures and White Rabbit beers and Pipsqueak cider. Lion took a 20 per cent stake when the business was founded in 2000 and currently holds 36.3 per cent.

And what a juicy little morsel it is for Lion to swallow. In its 2011 annual report, Little World Beverage’s noted 24.1 per cent growth in revenue to $70 million, 35.6 per cent increase in net profit to $9.2 million and a 41 per cent increase in operating cash flows.

The takeover offer of $5.30 a share – endorsed by LWB’s board (which controls 35 per cent of shares on issue) – saw the share price rocket from $3.79 on 15 June to $5.16 on 18 June, the day the takeover was announced.