Lion Nathan must sell Montana stake

Montana Group is New Zealand's biggest winemaker

WELLINGTON, New Zealand (CNN) -- Australasia's second largest brewer Lion Nathan has been ordered to sell 19 percent of New Zealand winemaker Montana Group.

The stake is worth about $83 million, based on Montana's closing price of NZ$5.05 on Friday.

The order followed a ruling by a special committee that Lion Nathan had breached the New Zealand Stock Exchange's takeover rules.

Lion Nathan, which holds 62 percent of Montana, has been locked in a battle for full control of the winemaker with Allied Domecq, the world's largest liquor group.

Thirty days to make sale

U.K.-based Allied holds 27 percent of Montana. It complained about the way Lion Nathan had acquired part of its stake in February.

The decision by the exchange's Montana Standing Committee on Friday that Lion Nathan must sell 19 percent of its holding within 30 days means Allied is back in the running to block any move to full control.

The share sale must be to a party or parties completely independent of Lion Nathan, which is 46 percent owned by Japan's Kirin Brewery.

In a decision released by the NZSE, the Standing Committee said "it is essential that there be no contract, arrangement or understanding in place by which Lion Nathan has any form of continuing entitlement to or interest in the shares sold."