Diageo Reports Restructuring Of South African, Namibian Operations

(RTTNews) - Diageo Plc. (DGE.L, DEO) Tuesday said that the company, Heineken N.V. and the Ohlthaver & List or O&L Group of Companies, the majority shareholder of Namibia Breweries Limited or NBL, have agreed to restructure their South African and Namibian joint ventures.

Diageo will sell its 42.25 percent equity stake in DHN Drinks (Proprietary) Limited and transfer the associated shareholder loan to Heineken.

The company will also sell its 25 percent equity stake in the Sedibeng brewery in Gauteng, South Africa to NBL and transfer the associated shareholder loan to Heineken.

Additionally, Diageo will sell its 15 percent equity stake in NBL to Heineken.

Further, Diageo will acquire the remaining shares it does not already own in brandhouse Beverages (Proprietary) Limited, the beer and spirits sales and marketing joint venture in South Africa, which will become a wholly-owned subsidiary of Diageo.

Diageo will receive a total net cash consideration of ZAR2.5 billion (about 128 million pounds), subject to customary adjustments. Completion of the transaction is expected before the end of 2015.

When the transaction is completed, Diageo will operate in South Africa and Namibia through wholly-owned subsidiaries.