Diageo Sells Stake In Desnoes & Geddes, Guinness Anchor Berhad to Heineken
Diageo plc Wednesday said it has sold interest in Desnoes & Geddes and in Guinness Anchor Berhad to Dutch brewer Heineken N.V. and acquired additional shares in Guinness Ghana Breweries. The move brings increased focus to their respective beer businesses in Jamaica, Malaysia, Singapore and Ghana, the company said.
Diageo sold its 57.87 percent shareholding in Desnoes & Geddes Limited or D&G to Heineken which will increase Heineken's shareholding in D&G to 73.32 percent. The company also sold its 49.99 percent stake in GAPL Pte Limited to Heineken giving Heineken full ownership of GAPL.
Further, Diageo acquired Heineken's 20 percent shareholding in Guinness Ghana Breweries Limited or GGBL which will increase Diageo's shareholding in GGBL to 72.42 percent.
Diageo said the net cash consideration receivable for the transaction is $780.5 million or approximately 515 million pounds. Payment to Diageo will be substantially settled today and will be used to reduce borrowings. The transaction will result in an exceptional profit on disposal of approximately 440 million pounds after tax.
As part of these transactions, Diageo will have long term distribution agreements with GAB for the brewing and distribution of Guinness and other Diageo beer brands in Malaysia and Singapore, and with D&G in relation to the brewing and distribution of Guinness and the distribution of spirits brands in Jamaica.
Diageo's international distribution rights to Red Stripe lager will transfer to Heineken. GGBL will continue to be Heineken's exclusive distributor in Ghana. (dpa-AFX)
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