Fremantle is fast emerging as the brewing capital of WA, with a brace of beer-linked market activity including this week’s move by Perth-based Empire Beer Group Ltd to fund two developments in the port precinct through a $10 million float plan.
Fremantle is fast emerging as the brewing capital of Western Australia, with a brace of beer-linked market activity including this week’s move by West Perth-based Empire Beer Group Ltd to fund two developments in the port precinct through a $10 million float plan.
On Monday, WA Business News’ Daily Business Alerts email revealed that Empire had lodged a prospectus to raise funds to buy Margaret River’s Colonial Brewing Company and develop two Fremantle locations for its planned craft beer enterprise – at the E-Shed on Victoria Quay and the Oyster Bar on Port Beach.
The company aims to build a brewery/restaurant facility at Fremantle’s E-shed complex on Victoria Quay, and has acquired the option to build another at the current Oyster Bar site on Port Beach in North Fremantle.
The move comes at an exciting time for the local craft brewing sector, especially in the historic port town where, interestingly, the new brewers are looking to develop non-traditional beer sites while many of Fremantle’s pubs are being bought for other uses.
Little World Beverages Ltd, the company behind the Little Creatures label, listed at $1 per share in November last year and is now trading at around $1.55 a share, giving it a market capitalisation of more than $90 million.
Little Creatures has its main venue at Fishermen’s Harbour, a facility it plans to expand after looking at other sites in Perth’s hills.
The success of Little Creatures has sparked significant interest in the sector, which had lain dormant since the early 1990s.
Then, after Carlton & United Breweries took over successful independent North Fremantle brewer, Matilda Bay, the beverage market focus shifted to wine making.
Earlier this month, Perth-based craft brewing company Oz Brewing Ltd announced plans to raise $1.5 million through an IPO to establish a cafe and microbrewery at the old Miss Maud site on Fremantle’s cappuccino strip.
Oz Brewing will trade under the Mad Monk brand.
Gage Roads Brewing Company, strongly associated with Fremantle’s maritime strength through its branding, and based just east of the port city in Myaree, is also known to be looking at its options after significant early growth and expansion to east coast markets.
Gage Roads founders previously worked at Fremantle’s Sail & Anchor hotel and microbrewery.
Colonial was started by Ross Smith, best known for his earlier roles as managing director of two prominent technology companies – daytraderHQ and Pilbara Mines.
Empire is chaired by Gryphon Minerals Ltd and Venture Minerals Ltd chairman Mel Ashton, who is joined on the board by Matilda Bay Brewing mastermind Phillip Gallagher as managing director.
Also serving on the board is Grange Consulting group founder Ian Macliver, Tourism Western Australia board of commissioners chair and industry identity Kate Lamont, and Pullinger Readhead Lucas partner Philip Lucas.
The company will offer 28.7 million shares to potential shareholders at 35 cents each, as well as issuing one free option exercisable at 35 cents on or before November 30 2008 for every four shares issued.
However, Empire has foreshadowed the need to raise an additional $2 million in oversubscriptions to fund the acquisition of the North Fremantle site, representing around 5.7 million shares and 1.4 million options.
The company will also pay $3.6 million and issue 1.7 million shares and 2.7 million options to major Colonial shareholder, Mr Smith’s Golden Hind Holdings Pty Ltd, as consideration for the acquisition of its shares, as well as agreeing to issue 857,143 shares and 214,286 options to the North Fremantle site owner should the sale go ahead.
In addition to this, Empire will offer the minority Colonial shareholders a total of five million shares and five million options pro rata to the number of Colonial shares held by them. The offer is not underwritten.
West Perth-based Max Capital Pty Ltd is acting as lead manager for the offer, with Grange Consulting Group Pty Ltd serving as corporate adviser. BDO Consultants (WA) Pty Ltd is investigating accountant to the deal, with BDO Chartered Accountants and Advisers acting as auditor.
