Distell and Capevin to complete merger
Distell can finally look forward to having a modern corporate structure, says analyst
The long-standing holding company structure between Capevin and liquor brands giant Distell will officially be dismantled at the end of May.
According to a Sens announcement issued on Monday, Capevin — which owns a 29% stake in Distell as its only investment – will be suspended from the JSE on May 30.
Shareholders in Capevin will receive about 0.067 shares in newly listed Distell Group Holdings Limited (DGHL) for every one Capevin share held.
Distell shareholders will exchange one share for one share in DGHL, which will officially list on the JSE on May 30.
DGHL will have Stellenbosch investment giant Remgro as its de facto controlling shareholder, with the Public Investment Corporation (PIC) ranking as a major shareholder.
DGHL holds well-known liquor brands such as Savanna, Hunter’s, Amarula, Klipdrift, Nederburg, Fleur du Cap, Durbanville Hills, Richelieu, Tassenberg, Three Ships and 4th Street.
The proposed restructuring of Capevin’s interest in Distell was first announced in mid-2017, but finalisation of the deal was delayed by the need for approval by the relevant competition authorities in a number of jurisdictions.
Opportune Investments CEO Chris Logan said the long-standing Capevin structure impeded Distell’s liquidity and prevented the group from mobilising scrip for value-enhancing acquisitions.
He said Distell could finally look forward to having a modern corporate structure.