Broo’s Exit From Mildura Brewery

My smallest shareholding, which is worth less than pocket change, is in Broo Ltd, a craft brewery enterprise.

I have been writing about it occasionally in recently months, firstly when there was a stoush between the Founder/Exec Chairman and a recently appointed new director, which was resolved in favour of the new director’s interests, and secondly when the new board suspended trading on 9 May pending some restructuring of the company.

I would be lying if I said that I was awaiting developments anxiously. I am only an investor in Broo for the fun of it, and my retirement does not hinge on my shareholding in Broo (nor, if I am honest with myself, on my substantial share portfolio mostly held in blue chips and ETFs and REITs etc).

Late last week, finally (!), we had a public announcement. The long and the short of it is that several holding companies owned by Broo Ltd were put into voluntary administration. The part of the business (two holding companies) relating to the Mildura Brewery Pub is in the process of being liquidated, and the Sorrento Brewery will also be wound down (to my discredit, I am not sure as to what, if anything, is run down in Sorrento, except perhaps the original microbrewery).

None of this surprises me particularly much. The main assets the company owns, after all, are the Mildura pub, the land in Ballarat, the brand & recipes, and the public listing. Getting rid of Mildura (and Sorrento) and Ballarat are logical steps, but leave me wondering at what price the company is really intrinsically valued at right now.

The company remains in a trading halt for the time being. I look forward to seeing this company trade again at some point, and even am happy to participate in another rights issue (after all, the last one only cost me $0.36) to see it keep on going.

Published by Ernest Zanatta

Narrow minded Italian Catholic Conservative Peasant from Footscray.

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