Standard Bank has issued $1.29b guarantee on behalf of Sunside Acquisitions Proprietary Limited (part of the Heineken Group) to support Heineken’s proposed acquisition of Distell Group Holding Limited.
The acquisition constitutes part of a wider transaction by Heineken. It entails an implementation agreement with Distell, Namibia Breweries Limited and Ohlthaver & List Group of Companies to integrate their respective and relevant businesses in Southern Africa into a new company controlled by Heineken.
The transaction will bring benefits of scale to Heineken across the continent and will see the implementation of Heineken’s robust sustainability principles.
As guarantor for the acquisition of Distell, Standard Bank has undertaken a commitment to pay Distell shareholders a maximum cash consideration
The commitment is one of the largest guarantees ever issued in Africa.
Speaking about the bank’s commitment to the acquisition of Distell, Abieyuwa Omoregie, Senior Manager, Client Coverage, Standard Bank, said: “Standard Bank Group is very happy to have been part of this hugely significant deal for Africa’s economic and sustainable development. Our commitment to the transaction is testament to the bank’s focus on bringing more global multinationals and foreign direct investment into Africa.”
The deal is subject to approvals from regulators and shareholders of Distell and Namibia Breweries. If approvals are successfully obtained, the transaction is expected to complete during 2022.
Heineken N.V. is a Dutch multinational brewing company, founded in 1864 by Gerard Adriaan Heineken in Amsterdam. As of 2019, Heineken owns over 165 breweries in more than 70 countries. It produces 348 international, regional, local and speciality beers and ciders and employs approximately 85,000 people
Distell Group Limited, with headquarters in Stellenbosch, South Africa, is a producer and marketer of spirits, fine wines, ciders and ready-to-drinks. Some of its products sold on the Ugandan markets are Hunters Gold, Hunters Dry and Savanna Dry among others.
Namibia Breweries Limited is one of the leading beverage manufacturing companies in Namibia and indeed in Southern Africa. In 2003, leading drinks company Diageo and brewer Heineken became NBL’s strategic partners.
Namibia Breweries are the makers of Windhoek Lager, Windhoek Light, Hansa Pilsener and Tafel Lager, as well as some other speciality beers. It distributes Guinness and Kilkenny.