The companies plan to create the 'leading beverage company in the Caribbean'. The combined business will include beer, malt and soft drinks operations in the Dominican Republic, Antigua, Saint Vincent and Dominica, as well as exports to 16 other countries in the Caribbean, the US and Europe.
Upon closing of the transaction, AmBev Brasil and ELJ will be the shareholders of Tenedora CND, a holding company which will own 83.5% of the shares of CND and 100% of AmBev Dominicana.
AmBev Brasil will nominate five members of the holding company’s board of directors and ELJ will nominate four board members.
AmBev Brasil is to own an initial indirect 41.76% interest in CND, acquired through a cash payment of approximately US$1billion and the contribution of AmBev Dominicana. The combined entities would have had net revenues of approximately US$570 million in 2011.
The closing of the transaction is expected to take place in the second quarter of 2012.
Separately, AmBev Brasil is to acquire an additional stake in CND of 9.3%, which is currently owned by Heineken, for US$237 million, at which point AmBev will own a total indirect interest of approximately 51% in CND.
