The worlds largest Spirits Company and owner of Guinness Nigeria Plc has sold off its stakes in Jamaican brewer Desnoes & Geddes Ltd DG.JS and GAPL Pte Ltd, the majority owner of Malaysia’s Guinness Anchor Berhad , to Heineken NV for $780.5 million.
The deal represents a 57.9% stake for Heineken taking its holding to about 73.3%. Heinken is also expected to make an offer for all remaining shares. Heineken also now has full ownership of Malaysia’s GAPL Pte Ltd.
The deal also includes Diageo’s acquisition of a 20 percent stake in Guinness Ghana Breweries Ltd from the Dutch brewer, raising Diageo’s total stake in GGBL to 72.42%. This essentially makes this a swap deal for both companies with Heinken focusing on expanding its breach in Jamaica and Malaysia.
As for Diageo, this further solidifies its holding of Guinness in Africa giving it s route to its consumers. Even though Guinness Stout makes up about 20% of Diageo’s revenue, they still consider it as critical to establisging a foothold in the African market making it easier for them to sell their Johnny Walker spirit.
Diageo also recently announced plans to buy up 70% stake in Guinness Nigeria at a price that is at a potential premium of 40% to the last price before it announced its acquisition plans.
Informative as usual. Pleas go over the first paragraph, seems like the caption and that paragraph are contradictory statements.
Hi Jacqueline thanks for your comments. It is a swap deal with Heineken selling to Diageo and Vice versa