Catalyst in market for Foster's pubs

BRITISH private equity group Catalyst Investment Management is expected to pursue a portfolio of pubs set to be sold by Australian brewing group Foster's.

Foster's will decide next month whether to press ahead with the A$1 billion (£450 million) sale.

Catalyst, whose parent PPM Ventures is owned by insurer Prudential, would probably bid through its 60%-owned Taverner Hotel Group, which has about 35 pubs in Australia.

Taverner chairman Ray King has said the deal would be too big for Taverner alone.

The Foster's portfolio is made up of about 130 pubs, which include bistros, bars, gaming rooms and off-licences.

But Catalyst's support - especially as part of a consortium with CVC Asia Pacific - could make the deal digestible.

Catalyst and CVC have been active together in the Australian market.

Catalyst director Justin Ryan would not comment, but has said that Taverner wants to expand.

CVC was more forthcoming. 'There is obviously a process going on, and it would be fair enough...to assume that we would be participating in that,' chief executive Andrew Cummins was quoted saying.