Diageo reaches JV venture agreement

RNS Number : 4705W

Diageo PLC

28 January 2013

 



28 January 2013

Diageo reaches agreement to form a 50:50 joint venture in respect of United National Breweries' traditional sorghum beer business in South Africa

On 9 November 2012, Diageo and Dr Mallya announced they had entered into a memorandum of understanding under which they would form a 50:50 joint venture, which would own United National Breweries' traditional sorghum beer business in South Africa.

Further to this announcement, Diageo today announces that it has entered into an agreement to acquire a 50% interest in the company which owns United National Breweries' traditional sorghum beer business in South Africa.  The remaining 50% will be held by a company affiliated to Dr Mallya.  Diageo will acquire its 50% interest for $36 million (approximately £23 million), subject to customary adjustments.  The transaction is conditional on (among other things) consent from the South African competition authority and is expected to complete in the first half of this year.

-ENDS-

For further information:

Media relations

Victoria Ward                                                   [phone]

Rowan Pearman                                                               [phone]

Jessica Rouleau                                                                [phone]

[e-mail]

Investor relations

Agnes Bota                                                                         [phone]

Angela Ryker Gallagher                                                 [phone]

Sarah Paul                                                                           [phone]

[e-mail]

About Diageo 

Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, beer and wine categories. These brands include Johnnie Walker, Crown Royal, JεB, Buchanan's, Windsor and Bushmills whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, 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 and its brands, visit www.diageo.com. For Diageo's global resource that promotes responsible drinking through the sharing of best practice tools, information and initiatives, visit www.DRINKiQ.com.

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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.

 

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