28th Jul 2015 06:49
LONDON (Alliance News) - Diageo PLC on Tuesday said it has agreed a deal with Dutch brewer Heineken NV and the Ohlthaver & List Group of Companies to restructure their mutual operations in South Africa and Namibia.
The FTSE 100-listed drinks company said that under the deal, it will sell its 42% stake in the DHN Drinks Pty Ltd business and transfer its associated shareholder loan to Heineken. It will also sell its 25% equity stake in the Sedibeng brewery in South Africa to Namibia Breweries Ltd, which is owned by Ohlthaver & List, and transfer the associated shareholder loan to Heineken.
In addition, it will sell its 15% stake equity stake in Namibia Breweries to Heineken.
Under the restructuring, Diageo also will acquire the remaining shares it does not already own in Brandhouse Beverages Pty Ltd, its beer and spirits marketing joint venture in South Africa, and will make the business a wholly-owned subsidiary.
Diageo will receive ZAR2.5 billion in cash for the restructuring, or around GBP128 million, and expects to complete the deals by the end of the year.
"We have worked very successfully with Heineken and NBL throughout our partnership, growing the beer business and establishing market leadership in spirits. From this leadership position we now believe that Diageo has the necessary scale to move to the next stage of growth for spirits, RTDs and our beer and cider portfolio in a focused, simplified ownership structure," said Diageo Chief Executive Ivan Menezes.
By Sam Unsted; [email protected]; @SamUAtAlliance
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