RMB advises Distell

MEDIA RELEASE

15 November 2021

RMB acts as financial advisor to Distell, as Heineken makes R40.1 billion offer to create a world-class, diversified Southern African alcoholic beverages player

Rand Merchant Bank has announced it is acting as financial adviser to Distell Group Holdings Limited in relation to Heineken International BV’s offer to acquire Distell. Heineken has made a firm offer to acquire the entire issued share capital in Distell by way of a scheme of arrangement.

The Heineken offer of R180 per share values Distell’s business at R40.1 billion in aggregate, representing a 35% and 53% premium to the 30-day and 90-day VWAP* ended on 17 May 2021, the day before the date on which Distell first issued a cautionary announcement relating to the transaction.

“Together, this partnership has the potential to leverage the strength of Heineken’s global footprint with our leading brands to create a formidable, diverse beverage company for Africa. We will have a stronger route-to-market with a unique multi-category portfolio, furthering our sustainable growth trajectory and ability to compete on scale,” said Richard Rushton, CEO of Distell.

The transaction will result in a combination of Distell’s cider, ready-to-drink beverages, and spirits and wine business with Heineken’s interests in Southern Africa and select markets in East Africa, and a 59.37% interest in Namibia Breweries. This combination will result in a world class, unlisted, Southern-African focused alcoholic beverages entity with a leading international beer and cider portfolio and unites the complementary brands, talent and skills of Distell, Heineken and Namibia Breweries to better serve consumers across the Southern Africa region.

End

*VWAP – volume-weighted average price

Contact:

Kate Kelly l kate.kelly@rmb.co.za l 079 637 4663