Distell investors hope for big deal
Shareholders vote to end Remgro-Capevin control structure as chairman sees ‘huge potential’ in China
Shareholders who waited eight long years for Remgro to clean up the cumbersome pyramid structure that gave it effective control over liquor group Distell are now hoping a major transaction is on the cards. On Friday, after a meeting at which shareholders gave approval for the removal of the Remgro-Capevin layer of control, shareholder Chris Logan said the new management under Richard Rushton had made significant strides. "Unfortunately despite this progress, there’s been little movement in the share price because of aggressive competition from major multinational companies," Logan told shareholders at Distell’s annual general meeting on Friday. The share closed marginally stronger on Friday at R127.71, but is close to its 12-month low and is back at late 2014 levels. Both Anheuser Busch Inbev (AB InBev), which is 100 times larger than Distell, and Heineken, 30 times larger, are making significant inroads into the cider market that was, until recently, dominated by Distell’s Savanna ...
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