Heineken buys South African Distell for R38.4 billion.. Heineken has agreed to buy South African wine and spirits maker Distell Group Holdings for 2.2 billion euros (38.4 billion rand), creating a new regional group to compete with its biggest rival Anheuser-Busch InBev and spirits giant Diageo.
The Dutch brewer has made an offer for R180, a stock recommended by Distell’s board of directors, according to a statement released on Monday. Heineken will also look to buy a controlling stake in the owner of Namibia Breweries, a regional partner, the brewer said.
The transaction will form a majority-owned entity by Heineken with a total valuation of around € 4 billion, the company said. The company will produce the brewer’s signature lager and Namibia’s Windhoek, as well as Distell staples such as Klipdrift brandy and Savanna cider and a number of wines for export.
Shares of Distell fell 5.1% to R173.36 at the start of trading in Johannesburg. The transaction still requires shareholder approval. The stock was trading at R182.59 at Friday’s close, above the offer price.
“We are very pleased to bring together three strong companies to create a regional beverage champion, perfectly positioned to seize important growth opportunities in Southern Africa,” Heineken CEO Dolf van den Brink said in the statement.
The deal sees Van den Brink, who became CEO in June last year, accelerate the decades-long strategy of his predecessor Jean-François van Boxmeer, who sought to exploit growth opportunities on the continent by investing hundreds of millions. euros in promising markets. like Ivory Coast, Nigeria and South Africa. Heineken is also seeking to counter the fall in beer sales in Asia.
The purchase is expected to increase profits in the first year after completion, Heineken said. The move comes years after AB InBev bought South African Breweries, the country’s largest beer maker, as part of its mega-deal for SABMiller Plc.
Remgro Ltd., an investment vehicle of South African billionaire Johann Rupert, has said it will vote in favor of the deal. The company and Public Investment Corp, Africa’s largest fund manager, each own just over 30% of Distell, according to data compiled by Bloomberg.
Namibia Breweries, market leader in this South West African country, exports to 17 countries outside South Africa. It will remain listed on the Namibia Stock Exchange, with public shareholders continuing to hold a minority stake.
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