Heineken Sells Stake In Guinness Ghana To Diageo In $780.5m Swap Deal

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%. […]

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.