It’s sad that Distell Group will disappear from the JSE within the next few months following its acquisition by Heineken – not only is another share disappearing from the stock exchange and reducing the investment opportunities, but a piece of SA business history is also fading.
Distell offered investors a unique and interesting investment opportunity, and for far longer than the official listing date of 2000 suggests.
It was formed by the merger of Distillers Corporation and Stellenbosch Farmers’ Winery (SFW) in 2000. Both of these companies have much longer histories. SFW was established in 1925 and the great SA businessman, the late Anton Rupert, formed SFW in 1945, only a few years after founding SA’s first tobacco company.
Heineken, one of the world’s largest beer brewers, is offering shareholders R165 per share for this part of the business. The plan is to merge this business with Heineken’s other African businesses and house it in a new company (Newco). Newco will include the well-known and fast-growing Namibia Breweries Limited, manufacturer of Windhoek beers and Tafel Lager.
Heineken will own a minimum of 65% of Newco after implementation of the transaction, with Distell shareholders being able to reinvest and hold up to 35% in Newco. Newco will own 100% of Heineken’s SA beer business; 100% of Heineken’s export business in Botswana, Zambia, Zimbabwe, eSwatini, Lesotho, Tanzania, Uganda, South Sudan and Kenya; and an indirect interest of 59.4% in Namibia Breweries Limited.
Heineken chair and CEO Dolf van den Brink says Heineken is excited to bring together three strong businesses to create a regional beverage champion, perfectly positioned to capture significant growth opportunities in southern Africa.
“Distell is a highly regarded, resilient business with leading brands, a talented workforce and a strong track record of innovation and growth in Africa.
“With Namibia Breweries Limited, there are exciting opportunities to expand premium beer and cider in Namibia and grow the iconic Windhoek brand beyond its home market,” says Van den Brink.moneyweb
