Distell flat on multibillion-rand acquisition news
News of a multibillion-rand acquisition staggered over two years did little to move Distell’s share price on Monday. The announcement about the first phase of a potential R8.6bn acquisition was released at the close of trade on Friday. By Monday, the share had edged up to close at R144.47, far off its 12-month high of R172.61. Through the proposed two-phase acquisition of Best Global Brands (BGB) — a mainstream spirits brand with operations in Angola, Kenya, Nigeria and Kenya — Distell will acquire an initial 26% for $54.6m from the families that own the business. Distell has agreed to acquire the remaining 74% no earlier than the end of 2019 if certain operating hurdles are achieved. The cost of the first and second phase of the acquisition is capped at R8.6bn. Distell management said the deal would be funded from internal cash resources. "The transaction is expected to be accretive to Distell’s headline earnings per share from the first year," Distell said. Chris Logan of Opportun...
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