Remgro surprises the market by passing on AB InBev’s Distell shares
In an unexpected twist, investment behemoth Remgro on Thursday declined a rare opportunity to fortify its position in liquor brands conglomerate Distell — opening the door for the Public Investment Corporation (PIC) to emerge as a major shareholder. Remgro already controls 30.9% of the tightly held Distell and had a pre-emptive right on a 26.4% stake that was "inherited" by beer giant Anheuser Busch InBev after its recent takeover of SABMiller. ABInBev’s sale of the shareholding in Distell — a mere drop in the operations of the enlarged brewing group — was part of the terms and conditions of the SABMiller takeover. Remgro was widely tipped to buy ABInBev’s Distell stake, especially after the investment group recently geared up for a possible transaction by raising fresh capital of R9.3bn in a rights issue. But Sens announcements confirmed that Remgro had opted not to exercise its pre-emptive right. The terms of the PIC’s share acquisition were not detailed, but the 26.4% Distell sta...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.