The takeover of Distell by Heineken is dragging on as its second-largest investor is asking for a higher price, according to a Bloomberg report. The Public Investment Corporation (PIC), a public asset management firm wholly owned by the South African government that owns about 30% in Distell is asking for about ZAR 200 (USD 13) a share, according to people close to the matter. This would value the total company at ZAR 44.6 billion (USD 2.93bn), significantly higher than the market value of ZAR 31.8 billion (USD 2.26bn) in May when Heineken approached Distell for the first time. (inside.beer, 18.5.2021)
The asked price means also a significant price premium in relation to the price paid by PIC when it bought a 26.4 percent stake in Distell Group at roughly ZAR 9 billion (USD 645 million) from AB InBev in 2016. At that time AB InBev had to sell its stake in Africa’s leading producer and marketer of spirits, wines, ciders and ready-to-drinks to comply with regulations set forth by South-African antitrust authority for approval for AB InBev’s take-over of rival SABMiller. (inside.beer, 19.11.2019)
Distell declined to comment on the Bloomberg report. In September Distell said while satisfactory progress had been made, a number of issues still needed to be agreed.