Thu | Aug 24, 2017

Heineken extends offer after 86% acquired in D&G

Published:Wednesday | December 16, 2015 | 12:01 AM
Bottles of Red Stripe sorrel beer.

International brewery giant Heineken will extend its offer to acquire all outstanding shares in local brewery Desnoes & Geddes to January 21, but already has sufficient take-up to delist the stock.

The original closing date was December 22, according to a statement from Heineken Sweden AB, an indirect wholly owned subsidiary of Heineken.

"It should be noted that as of today, the percentage of acceptance of the offer, in addition to the shares already held by Heineken Sweden and its affiliated companies, represents 86.1 per cent of the issued ordinary shares in the capital of D&G," stated Heineken in its release this month.

Last week, the Financial Gleaner reported that Heineken had already surpassed the 80 per cent mark, which would trigger the delisting of D&G from the Jamaica Stock Exchange. At the time, NCB Capital Markets, the broker to the deal, avoided revealing the precise percentage garnered by the beer giant.

The acquisition of D&G, which operates as Red Stripe Jamaica, forms part of Heineken's drive to grow its earnings in faster growth markets outside of Europe, which are predominantly in emerging markets. It announced, in early November, plans to spend up to US$194 million to acquire all outstanding shares in D&G. This followed its purchase of Diageo Plc's 57.9 per cent shareholding in the company on October 7, a deal that took Heineken group's holding to 73.3 per cent at the time.

Minority owners will be paid US$$0.259 per share.

steven.jackson@gleanerjm.com