Distell’s CEO says the entity that will be created will have a significant presence in African markets
In what has perhaps been one of the year’s most anticipated transactions, Dutch brewer Heineken has made a firm offer for JSE-listed Distell in a deal that values Africa’s largest cider producer at R40.1bn.
The whisky business will be housed in a separate company called Capevin, in which Remgro, which has voting rights over 56% of Distell’s shares, will retain a controlling stake , with Heineken a minority interest. Rushton said on a number of occasions that Distell had gone on record to investors and analysts saying a “premium beer would make a magnificent complementary rounding off of the Distell portfolio, and would allow us to capture significant growth and potential market-share opportunities both in Southern Africa and in critical markets on the African continent”.
These assets will be housed in NewCo, in terms of which all Distell shareholders will have the opportunity to retain shares in that new structure or take cash of R165 a share to exit it. There will also be a third option for shareholders, namely a part cash and share consideration at a fixed ratio of 42% cash and 58% shares.
During the question session after the webcast presentation, Investec investment analyst Anthony Geard asked whether the cash offer “falls some way short” in terms of the value of Distell.
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