Diageo announces restructuring in South Africa and Namibia

28 July, 2015

Diageo has announced that Diageo, Heineken NV and the Ohlthaver & List (O&L) group, the majority shareholder of Namibia Breweries Limited (NBL), have agreed to restructure their South African and Namibian joint ventures.

When the transaction has completed, Diageo will operate in South Africa and Namibia through wholly-owned subsidiaries.

Diageo is going to:

  • sell:

  • its 42.25% equity stake in DHN Drinks (Proprietary) Limited and transfer the associated shareholder loan to Heineken;

  • 25% equity stake in the Sedibeng brewery in Gauteng, South Africa to NBL and transfer the associated shareholder loan to Heineken;

  • and its 15% equity stake in NBL to Heineken.

  • and acquire the remaining shares which it does not already own in brandhouse Beverages (Proprietary) Limited, the beer and spirits sales and marketing joint venture in South Africa, which will become a wholly-owned subsidiary of Diageo.

Diageo will receive a total net cash consideration of ZAR2.5 billion (approximately £128m), subject to customary adjustments. Completion of the transaction is expected before calendar end 2015, and is subject to regulatory approvals.

Diageo chief executive Ivan Menezes said: “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.”

Heineken CEO and chairman of the Heineken executive board Jean-François van Boxmeer said: “For the past 11 years we have benefitted enormously from our close collaboration with Diageo and I would like to thank them for their valued partnership and wish them well for their future in the region. Our new structure allows us to focus solely on the beer category and strengthens our platform for continued growth. We look forward to working with our longstanding partner Namibia Breweries and are excited about our future prospects in this important part of the global beer market.”

Keywords: diageo




Comment

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