In April, FGL shareholders agreed to the beer brewer’s plans to demerge its wine making division.
The division, known as Treasury Wine Estates, was separately listed, whilst the demerger was expected to provide greater flexibility for both companies going forward.
The demerger also increased the likelihood that both divisions could become takeover targets.
Out of Africa
FGL this week rejected a $9.51 billion takeover offer from South Africa’s SABMiller.
The $4.90 a share offer is at an 8.2% premium to FGL’s Monday closing share price.
FGL believes that the proposal significantly undervalues the company.
The move comes after FGL’s recent demerger.
FGL shares have rallied significantly since rejecting the offer as most analysts feel the bid will spark a bidding war.