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Heineken hits trigger for D&G delisting

Published:Wednesday | December 2, 2015 | 12:00 AMSteven Jackson

Heineken has surpassed the hurdle of owning more than four-fifths of the total shareholding in brewery Desnoes & Geddes (D&G), which trades as Red Stripe Jamaica, that will allow the new owner to take the company private.

"We are solidly over the 80 per cent mark and the significance of that is that it will trigger a mandatory delisting," said Ramon Pitter, vice-president of investment banking and group mergers at NCB Capital Markets, on Wednesday.

When pressed on the percentage now owned by Heineken, Pitter said only that the percentage changes daily. Heineken already owned nearly three-quarters of Red Stripe when it opened its mandatory offer to minority shareholders last month. The offer closes on December 22 with an option to extend.

In early November, Heineken announced its intention to acquire 100 per cent shares in D&G. At the time, Heineken indicated that it would spend up to US$194 million to acquire the remaining shares in the company. 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 at the same rate as Diageo, at US$$0.259 per share.

"Heineken made an attractive offer to shareholders. They are paying multiples for the [shares] and its an attractive offer from an international perspective," Pitter said.

The offer was officially made via Heineken Sweden AB, an indirect wholly owned subsidiary of Heineken.