Remgro and Distell to gain from dismantling Capevin
Liquor giant Distell, which owns best-selling brands such as Savanna, Hunters, Nederburg and Klipdrift, has uncorked a proposal that fortifies the position of its biggest shareholder, investment giant Remgro. The proposed deal could potentially also boost Distell’s international deal-making and investment appeal by collapsing an archaic and unpopular pyramid holding company structure. On Thursday, Distell proposed dismantling Capevin, a JSE-listed holding company that holds a 26% stake in Distell as its only asset. The central figure in the transaction is Remgro, which holds a 26.4% direct stake in Distell, as well as a 19% stake in Capevin. Other major shareholders in Capevin are asset manager Coronation and pension manager the Public Investment Corporation (PIC). While there has been a persistent clamour to break down the pyramid, speculation abiut a possible dismantling of Capevin mounted this week following a Financial Mail article, which noted that Remgro had acquired more shar...
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