TIDMDGE
RNS Number : 2462J
Diageo PLC
02 April 2015
2 April 2015
Diageo to acquire control of United National Breweries
Diageo to acquire control of United National Breweries'
traditional sorghum beer business in South Africa by acquiring the
remaining 50% interest which it did not already own.
On 28 January 2013, Diageo announced it had entered into an
agreement to acquire a 50% interest in the company which owns
United National Breweries' traditional sorghum beer business in
South Africa with the remaining 50% being held by Pestello
Investments Inc., a company affiliated to Dr Vijay Mallya.
Diageo today announced that it has entered into an agreement to
acquire the remaining 50% interest in the company, thereby making
it a wholly owned subsidiary of Diageo. Diageo will acquire this
further interest from Pestello Investments Inc. for an initial
payment of $22 million (approximately GBP14.8 million) and a
potential earn-out payment of up to $14 million (approximately
GBP9.4 million). The transaction is conditional on (among other
things) consent from the South African competition authority and is
expected to complete in this fiscal year.
Once completed, this transaction will give Diageo control of the
leading traditional sorghum beer business in South Africa,
including the ability to make investment decisions to support the
continued growth of United National Breweries' brands in the
sorghum beer category.
-ENDS-
For further information, please contact:
Media enquiries to:
Kirsty.King@diageo.com / 0044 208 978 6855
Global.press.office@diageo.com / 0044 208 978 2749
Investor enquiries to:
James.Crampton@diageo.com/ 0044 208 978 4613
investor.relations@diageo.com
About Diageo
Diageo is a global leader in beverage alcohol with an
outstanding collection of brands across spirits, beer and wine
categories. These brands include Johnnie Walker, Crown Royal, J B,
Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One
vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and
Guinness.
Diageo is a global company, and our products are sold in more
than 180 countries around the world. The company is listed on both
the London Stock Exchange (DGE) and the New York Stock Exchange
(DEO). For more information about Diageo, our people, our brands,
and performance, visit us at www.diageo.com. Visit Diageo's global
responsible drinking resource, www.DRINKiQ.com, for information,
initiatives, and ways to share best practice.
Celebrating life, every day, everywhere.
Cautionary Note Regarding Forward-Looking Statements
This announcement contains certain forward-looking statements
relating to the plans and objectives of Diageo. These
forward-looking statements can be identified by the fact that they
do not relate only to historical or current facts. Forward-looking
statements often use words such as "anticipate", "target",
"expect", "estimate", "intend", "plan", "goal", "believe", "hope",
"aims", "continue", "will", "may", "should", "would", "could", or
other words of similar meaning. These statements are based on
assumptions and assessments made by Diageo in light of their
experience and their perception of historical trends, current
conditions, future developments and other factors they believe
appropriate. By their nature, forward-looking statements involve
risk and uncertainty, because they relate to events and depend on
circumstances that will occur in the future and circumstances could
cause actual results and developments to differ materially from
those expressed in or implied by such forward-looking statements.
Although it is believed that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be
given that such expectations will prove to have been correct and
you are therefore cautioned not to place undue reliance on these
forward-looking statements which speak only as at the date of this
document. Diageo assumes no obligation to update or correct the
information contained in this announcement (whether as a result of
new information, future events or otherwise), except as required by
applicable law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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