Acquires additional 10.62% stake in Halico

RNS Number : 4181F

Diageo PLC

15 June 2012

 



15 June 2012

Diageo completes Public Offer to acquire additional 10.62% stake in Halico

Diageo, the world's leading premium drinks business, has successfully closed its Public Offer to acquire an additional 10.62% stake in Hanoi Liquor Joint Stock Company ("Halico") in Vietnam for a consideration of approximately £14.0 million. The Public Offer opened on 11 May 2012 and closed on 14 June 2012.

Diageo expects to complete the transaction on 24 June 2012.  Following the full completion of the Public Offer, Diageo's total equity stake in Halico will be 45.52%.  The price of the Public Offer was VND 213,600 per share, the same price as Diageo's previous purchases of Halico shares. 

Diageo entered into a Strategic Partnership Agreement with Halico, Vietnam's leading domestic branded spirits producer with the number one vodka brand, Vodka Hanoi, in January 2011.  This latest Public Offer, to increase its equity stake in Halico, further demonstrates Diageo's commitment to work with Halico in the rapidly growing Vietnamese branded spirits sector. As Halico's strategic partner, Diageo will continue to assist Halico in enhancing its capabilities across a range of functions, including innovation, branding, supply and distribution. Diageo will remain a long term equity investor in Halico.

Ho Van Hai, Director of Halico, said: "Diageo continues to demonstrate its commitment under the Strategic Partnership Agreement, assisting Halico to strengthen the Vodka Hanoi brand.  We look forward to long term co-operation between Diageo and Halico under the Strategic Partnership Agreement and the positive effects it will continue to have on our business."

Gilbert Ghostine, President of Diageo Asia Pacific commented: "We are pleased to further participate in Halico's growth potential and success by increasing our equity investment, which is an expression of our long term commitment both to Halico and to Vietnam."

Diageo will independently continue to develop its international premium spirits portfolio in Vietnam, led by Johnnie Walker, Smirnoff and Baileys, through its wholly owned subsidiary Diageo Vietnam, Limited.

-ENDS- 

Investor enquiries:

Angela Ryker Gallagher

[phone]

Agnes Bota

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[e-mail]

Media enquiries:

Kirsty King

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[e-mail]

Editor notes

About Diageo

Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, beer and wine. These brands include Johnnie Walker, Crown Royal, JεB, Buchanan's, Windsor and Bushmills whiskies, Smirnoff, Cîroc and Ketel One vodkas, Baileys, Captain Morgan, Jose Cuervo, Tanqueray and Guinness.

Diageo is a global company, with its products sold in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands, and performance, visit us at Diageo.com. For our global resource that promotes responsible drinking through the sharing of best practice tools, information and initiatives, visit DRINKiQ.com.  Celebrating life, every day, everywhere.

About Halico

Halico was founded in 1898 and is the largest domestic branded spirits producer in Vietnam. The business produces and supplies spirits to a diverse range of customers across Vietnam. Halico's main brand is Vodka Hanoi. Hanoi Beverage Company is the largest shareholder of Halico, holding approximately 54% of its equity.  Diageo has built its 45.52% equity stake in Halico, in the following stages:

·      Diageo acquired 18.67% equity stake from VinaCapital

·      Diageo acquired 6.26% equity stake from other shareholders by way of an over the counter acquisition

·      Diageo acquired 5.07% equity stake via 1st Public Offer

·      Diageo acquired 4.9% equity stake from VinaCapital

·      Diageo acquired 10.62% equity stake via 2nd Public Offer          

Forward-looking statements

This document contains 'forward-looking statements'. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward looking statements include all statements that express forecasts, expectations, plans, outlook and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability or cost of financing to Diageo, anticipated cost savings or synergies, the completion of Diageo's strategic transactions and restructuring programmes, anticipated tax rates, expected cash payments, outcomes of litigation and general economic conditions. 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. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including factors that are outside Diageo's control. All oral and written forward-looking statements made on or after the date of this document and attributable to Diageo are expressly qualified in their entirety by the 'risk factors' contained in Diageo's annual report on Form 20-F for the year ended 30 June 2010 filed with the US Securities and Exchange Commission ("SEC"). Any forward-looking statements made by or on behalf of Diageo speak only as of the date they are made. Diageo does not undertake to update forward-looking statements to reflect any changes in Diageo's expectations or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Diageo may make in documents it publishes and/or files with the SEC. All readers, wherever located, should take note of these disclosures. The information in this document does not constitute an offer to sell or an invitation to buy shares in Diageo plc or an invitation or inducement to engage in any other investment activities. Past performance cannot be relied upon as a guide to future performance.

 

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