7th Oct 2015 06:42
LONDON (Alliance News) - Diageo PLC on Wednesday said it has completed an agreement with Dutch brewer Heineken under which Diageo will sell its stakes in two business and buy Heineken's stake in another.
The FTSE 100-listed drinks giant said it will sell its 58% stake in Desnoes & Geddes Ltd to Heineken, increasing the Dutch company's stake in the company to 73%. It also will sell its 49.99% stake in GAPL Pte Ltd to Heineken, giving the Dutch brewer full ownership of the business.
Diageo will then acquire Heineken's 20% stake in Guinness Ghana Breweries Ltd, increasing Diageo's stake in the business to 72%.
The net cash receivable by Diageo for the deals will be USD780.5 million, which will be settled immediately. This will result on the group booking a one-off profit on disposal of around GBP440 million after tax.
"The transaction we have announced today continues our proactive approach to our portfolio, enhancing our focus on the core to achieve Diageo's performance ambition. It provides a strong route to consumer for Guinness which will grow the brand in these markets. I am pleased that this transaction meets the clear strategic objectives of both Heineken and Diageo," said Ivan Menezes, Diageo's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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