HONG KONG-The Japanese beer and beverage maker Asahi Group on Thursday filed a lawsuit in Australia against two buyout firms over its 1.53 billion New Zealand dollar purchase of a liquor company two years ago.
Asahi Holdings Australia is suing Pacific Equity Partners of Australia and Unitas Capital of Hong Kong, accusing the two private equity firms of ‘‘misleading and deceptive conduct’’ when they sold Independent Liquor (New Zealand) to the Japanese company in 2011 for the equivalent of $1.3 billion at today’s exchange rates.
Asahi has made a number of overseas acquisitions in recent years to counter declining beer sales at home, where the company’s long term growth prospects are limited due to Japan’s aging and shrinking population. Independent Liquor distributes popular pre-mixed cocktail drinks in New Zealand like Vodka Cruiser and Woodstock Bourbon & Cola.
In its claim, filed in a Melbourne court, the Asahi units said Pacific Equity and Unitas falsly represented the financial position of Independent Liquor by significantly inflating its earnings before interest, tax, depreciation and amortization.
The alleged false financial data was presented during the sale process and while Asahi was conducting its due diligence, the Japanese firm said.
‘‘We conducted due diligence thoroughly and in good faith and relied on the figures provided to us,’’ Atsushi Katsuki, the managing director of Asahi’s Australian unit, said in a statement Thursday. ‘‘We are seeking maximum recovery of our loss and we have commenced legal proceedings for this purpose.’’
Pacific Equity, one of the largest private equity funds in Australia and New Zealand, and Unitas, which focuses on Asia, issued a joint statement Thursday rejecting Asahi’s claims.
‘‘The allegations foreshadowed by Asahi are completely untrue and unfounded,’’ the firms said. ‘‘Asahi and its team of expert advisers were given full access to ! information and management during a three month due diligence process.’’
In response, the private equity firms said they planned to start their own legal proceedings in New Zealand to seek damages from the Japanese firm. ‘‘The approach taken by Asahi is a breach of the sale contract,’’ their statement said.
