Heineken makes offer for remaining D&G shares

Tuesday, November 10, 2015

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Dutch beer giant Heineken International has offered to purchase the remaining shares of the recently acquired Desnoes and Geddes (D&G) as it moves to consolidate its beer business in the Caribbean and south-east Asia.

In a Take Over Bid Offer Circular issued by Heineken Sweden AB on the Jamaica Stock Exchange (JSE) Monday, the beer company offered to purchase all outstanding shares for US$0.259 per share or 341 per cent premium over the last closing share price prior to the acquisition.

Chairman of the Heineken board Hemmo Parson stated in the release that the deadline time and date for holders of shares to accept the offer, unless extended, is 5:00pm on December 22.

The move comes after Heineken last month acquired an additional 1.6 billion shares in Diageo, parent company of Desnoes and Geddes Limited (D&G), increasing its ownership in the company to 73.32 per cent.

D&G is the Jamaican brewer and beverage producer of one of the country's best known exports -- Red Stripe Beer, and also produces Dragon, the local stout brand that competes alongside Guinness.

"As a consequence of the D&G acquisition and pursuant to the Regulation 12(1) of the Jamaica Takeover Code and the JSE Rules, Heineken Sweden hereby makes an offer to acquire any and all of the 749,559,524 shares which it and other members of the Heineken Group do not currently own," Parson stated to shareholders.

He added that the company is of the belief that there is a long-term growth potential in the Jamaican beer and spirits markets and the acquisition of D&G by the Heineken Group should provide the capital and focus to achieve that potential.

Furthermore, D&G has a strong portfolio of brands both owned and under licence which underpins its market position. The Heineken Group believes the acquisition of D&G provides an opportunity to accelerate the growth of a number of these brands in Jamaica and internationally alongside the Heineken Group's brand.

"Accordingly, the Heineken Group does not currently expect lay-offs of employees in Jamaica as a result of the offer," Parson further noted.

The Heineken Group produces and distributes beer and other beverages worldwide. It develops and markets premium beer and apple cider brands including Heineken, Amstel, Affligem, Sol, Desperados, Strongbow, Newcastle Brown Ale and John Smith's.

Heineken Group has a portfolio of more than 250 international, regional, local and specialty beers and ciders. The Group employs approximately 81,000 people and operates more than 160 breweries in 70 countries.

Affiliates of Heineken will become the new licence holder for Red Stripe in the United Kingdom, United States and Canada at the start of the new year. At the same time, the company will also become licence holder for Dragon Stout and Malta in the United Kingdom.

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