Advertise with fastmoving.co.za
 
 

AB InBev to sell stake in Distell to South African fund PIC
AB InBev to sell stake in Distell to South African fund PIC

AB InBev to sell stake in Distell to South African fund PIC

LIQUOR NEWS

ESM.com - Dec 19th 2016, 09:30

Anheuser-Busch InBev NV agreed to sell SABMiller Plc’s stake in South African drinks maker Distell Group Ltd. to Africa’s largest pension administrator, clearing another regulatory hurdle in the brewing industry’s biggest-ever deal. 

The Public Investment Corp. will buy the 26.4% stake in the maker of Amarula liquor and Klipdrift brandy, the Leuven-based company said in a statement Thursday, without disclosing the price. The holding is worth 8.92 billion rand ($640 million), based on Wednesday’s close. AB InBev shares fell 1% in early Brussels trading. Distell rose 1.1% in Johannesburg.

PIC, which oversees the bulk of the South African government’s pension fund money with almost 2 trillion rand in assets under management, "most likely got their share at some discount, which means that maybe AB InBev had to take a bit of a knock on the price," Izak van Niekerk, an analyst at Mergence Investment Managers, said by phone.

The sale of the stake brings AB InBev closer to meeting antitrust commitments that allowed it to buy SABMiller for about $100 billion. Asahi Group Holdings Ltd. agreed to buy SABMiller’s central and eastern European assets on Wednesday for €7.3 billion euros.

Johann Rupert’s Remgro Ltd. and Capevin, which together own about 53% of Distell, decided not to exercise preemptive rights on Distell shares, AB InBev said. Remgro Chief Executive Officer Jannie Durand had previously said Remgro and Capevin would be interested in purchasing the stake in the maker of Savanna Dry cider at the right price. Shares in Capevin fell 0.9%, trimming an earlier decline of 9.7%.

The sale is conditional on approval by South African antitrust authorities.Content ©2016 European Supermarket Magazine 

Read more about: pic | distell | ab inbev

Related News

Distell and AB Inbev square off in booze showdown
13/09/2019 - 10:28
Exclusive branding arrangements with liquor outlets and agreements with sports stadiums took centre stage at Competition Tribunal hearings on Thursday, into Distell's accusation that Anheuser-Busch InBev (AB InBev) is contravening the conditions of its 2016 merger with SABMiller.

Distell says rest of Africa offset lower volumes in SA
28/08/2019 - 09:23
Alcoholic drinks company Distell, whose brands include Nederburg wines and Klipdrift brandies, says its rest-of-Africa business made up for lower sales volumes in SA in the year to end-June.

Angola and Zimbabwe operations sap Distell earnings
07/08/2019 - 13:07
Beverages company Distell, whose brands include Nederburg wines and Three Ships Whisky, says earnings fell in the year to end-June as it took a hit on operations in Angola and Zimbabwe.

AB InBev rolls out blockchain solution to assist farmers
01/08/2019 - 14:16
Multinational brewing company AB InBev Africa is rolling out a blockchain solution to assist smallholder farmers in its supply chain.

AB InBev beats expectations as beer sales growth hits five-year high
25/07/2019 - 10:54
Anheuser-Busch InBev (AB InBev), the world’s largest brewer, beat earnings expectations in the second quarter after beer sales grew at their fastest pace in over five years, helped by increases in Latin America, Europe, and Africa.