After disclosing a loss of $464 million, Australia's brewer and wine maker Foster's Group (FGL) now states that a formal decision has not yet been reached on the much speculated splitting of their wine and beer divisions.

Foster's chief executive Ian Johnston said, “We won't be commenting on media rumour or speculation.”

Johnston pointed at the complexity of splitting a company that shares infrastructure, staff, suppliers and customers. However, he said, the transformation plans for the company were “progressing well.”
He said if the board has endorsed the plans, the demerger will be completed during the first half of next year.

Foster's transformation program involves separating the beer and wine operations and divesting non-core assets and brands. A final dividend has also not been declared yet. Investors are more likely to wait for the annual meeting in October in order to vote on a potential 12 cents-per-share payout.

Johnston said Foster's is “firmly heading in the right direction.” He added that “In the next 12 months our businesses should reflect the benefits of all the work we've done.”

Potential bidders would be analyzing Johnson's statements, especially, this last one: “Last year people were saying, 'What's happening at Foster's?' This year it's more like, 'Look what's happening at Foster's'.”