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Heineiken buys Diageo's shares in D&G

Published:Wednesday | October 7, 2015 | 10:16 AM

Beer company Heineken has bought Diageo's shares in Denoes and Geddes.

It has also bought out Diageo in other markets.

Diageo, in a statement said the transaction with Heineken will bring increased focus to their respective beer businesses in Jamaica, Malaysia, Singapore and Ghana.

The transaction comprises:

The sale of Diageo's 57.87 per cent shareholding in Desnoes & Geddes Limited (D&G) to Heineken which will increase Heineken’s shareholding in D&G to 73.32 per cent.

The sale of Diageo's 49.99 per cent stake in GAPL Pte Limited (GAPL) to Heineken giving Heineken full ownership of the company.‎

The acquisition by Diageo of Heineken’s 20 per cent shareholding in Guinness Ghana Breweries Limited (GGBL) which will increase Diageo's shareholding in GGBL to 72.42 per cent.

Diageo says the deal is worth $780.5 million (approximately £515 million) in net cash.

It says 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 after tax," Diageo said.

More details soon.