TONY Froggatt, chief executive of Scottish & Newcastle, said the Edinburgh-based company would be interested in buying Spain's second-biggest brewer, as shareholders gave resounding support to the controversial sale of its pubs business.
Speaking after an uneventful extraordinary meeting to approve the (pounds) 2.5bn sale of the group's 140-plus pubs to generate funds to expand the brewing business, Froggatt said he would want to talk to shareholders in Spain's Mahou brewing business should they consider selling the company.
Froggatt added that his priority was to squeeze more value out of the existing brewing operations, which Sir Brian Stewart, chairman, told investors offered S&N better prospects for long-term growth than the pubs trade.
Directors were confident of the prospects of the continuing group for the financial year and S&N was ''well on track'' to meet its financial and commercial objectives, said Stewart.
Trading had been in line with expectations since a stormy annual meeting in August when some shareholders said off-loading the profitable pubs business would be ''selling the family silver''.
Stewart defended the sale to Spirit Amber, noting it will generate a better-than-expected book surplus of (pounds) 200m. Spirit has committed to buy a minimum amount of beer from S&N for the pubs it is acquiring for seven years.
In response to concerns expressed by one shareholder about a proposed cut in dividends following the sale, Stewart said directors expected growth in brewing to allow the company to compensate.
While saying he did not normally comment on speculation, Stewart told another share holder who asked about reports suggesting S&N brands might be sold to Belhaven that he ''could not imagine that happening''.
Including proxies, 99.74% of the votes cast were in favour of the sale.
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