This re;rating seems to be slow starting as since ann reBurns...

This re;rating seems to be slow starting as since ann re
Burns Philp’s $US1.350 billion sale to Associated British Foods the volumes jumped but the price hardly moved. Maybe im inpatiant but would have expected to be looking at close to 80c by now, perhaps by end next month. Took up position in BPCIMV at.335 should give good leverage and cover any upward movement in the coming weeks as upward trend continues.
Sale to be completed around 30 SEP and there will be announcement then, could give more mileage the gain on the transaction would be more than $A500 million and leave BPC with low dept of 700 mil and a nice war chest to surprise us with and im sure they allready have a few targets.
One to watch as now the debt problem is no longer a buying constraint and believe the trend will continue up for some time.



through in ann from 22nd for anyone who missed it....






BURNS, PHILP & COMPANY LIMITED
ABN 65 000 000 359
LEVEL 23, 56 PITT STREET
SYDNEY NSW 2000
GPO BOX 543
SYDNEY NSW 2001
AUSTRALIA
Media Release TEL: NATIONAL (02) 9259 1111
TEL: INT’L +61 (2) 9259 11111
FAX: (02) 9251-4496
Thursday, 22 July 2004
Burns Philp’s $US1.350 billion sale to Associated British Foods
Burns Philp & Company Limited (Burns Philp) has today entered into agreements to sell its Yeast and
Bakery Ingredients Group and its Tones Bros. herbs and spices business to Associated British Foods, plc
(ABF) for a total sale price of $US1.350 billion (approximately $A1.9 billion).
At media and analysts briefings, Burns Philp Chief Executive, Tom Degnan, said today: " The yeast
business has grown significantly under our existing management. Over several years we have done many
improvements to build this business to its current strong position. In the hands of ABF, this company can
continue to prosper and grow’’.
Mr Degnan pointed out that ABF also has significant bakery ingredient operations around the world and will
look to utilise the yeast company's global platform for further growth.
The proceeds from these divestments will be applied, as to 25% $US337.5 million ($A475 million) against
debt reduction in accordance with the group’s financial arrangements, with the balance $US1.0125 billion
($A1.425 billion) deposited with our consolidated cash reserves.
In answer to questions regarding use of part of the proceeds, Mr Degnan said although the company had
no specific acquisitions in mind, it was constantly evaluating prospects. He added that the sale of the
assets to Associated British Foods would be completed ‘’around September 30, 2004’’.
He said the company ‘’would have cash on hand of about $A1.5 billion’’.
Mr Degnan confirmed that following the sale net debt for the company would be reduced from
approximately $A2.6 billion to $A700 million and that the gain on the transaction would be more than
$A500 million.
He said ABF became interested in the yeast business following on from its decision to tender for the Tones
Bros. business.
Burns Philp announced on 4 March 2004 its intention to sell Tones Bros. The sale announced today to ABF
represents the completion of that process, subject to compliance with requirements of the United States
Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The sale of the Yeast and Bakery Ingredients Group is expected to be completed around 30 September
2004, subject to the satisfaction of certain conditions precedent, the most significant being:
�� compliance with the requirements under the United States Hart-Scott-Rodino Antitrust
Improvements Act of 1976;
�� applicable regulatory approvals (including any foreign investment or competition authority
approvals together with satisfaction of any ASX requirements);
�� no legal restraint, prohibition to completion, or regulatory action which prevents completion.
For further information
Contact:
Tom Degnan, Burns Philp Tel) 02 9259 1348
Graham Canning, Cannings Tel) 02 9252 0622
INCORPORATED IN NEW SOUTH WALES AUSTRALIA IN 1883
PRINCIPAL COMPANY OF THE BURNS PHILP GROUP OF COMPANIES

This is not advice just an opinion and as always do your own research before buying any stocks as this sometimes helps.
m2u