Apr 2013 Financial News

T&T whiskey company sold for $1.57bn

Apr 16, 2013

Trinidad-owned Scotch whiskey distiller, Burn Stewart, was yesterday sold to South African drinks giant Distell for US$244 million ($1.57 billion). Angostura owns 28.9 per cent of Burn Stewart, while 71.1 per cent of the company is owned by CL World Brands, which is a wholly owned subsidiary of CL Financial, according to its latest published annual report.

CL Financial, while owned by its shareholders, is controlled by the Government, pursuant to a shareholders’ agreement initially signed in June 2009 and extended on two occasions. The shareholders’ agreement was meant to govern the relationship between the Government and the CL Financial shareholders following the State’s $20 billion-plus bailout of CL Financial from Jaunuary 2009. The net consideration accruing to CL World Brands is expected to go to the State as it seeks to recover funds owed by CL Financial for the bailout.

The total consideration for the sale of Burn Stewart consists of an initial payment of US$229 million and a continent payment of US$15 million, according to a statement from Distell on the South African stock exchange Web site.The initial payment will be paid in cash to the sellers, net of US$38 million in assumed liabilities, which include net debt and minority interest. Burn Stewart owns three malt whiskey distilleries, which have a total annual distilling capacity of 6.7 million litres of alcohol.

While Distell is acquiring 100 per cent of Burn Stewart's share capital, the South African company will continue with existing arrangements whereby Burn Stewart bottles and distributes for Angostura. Distell will also retain the Burn Stewart Managing Director and senior executive management. Contacted for comment, Angostura spokesman Giselle West replied by e-mail to say the Laventille-based company would have an official statement by Friday.

Angostura and CL Financial chairman, Gerry Yetming, did not respond to calls and a text message up to press time. Minority share rights activist, Peter Permell, said he had no doubt that the transaction would be welcomed by Angostura shareholders, who he said would be entitled to US$70.5 million or about $451 million, based on his back-of-the envelope calculations.


Source:
Anthony Wilson
Trinidad Guardian
Tuesday April 16, 2013

http://www.guardian.co.tt/business/2013-04-16/tt-whiskey-company-sold-157bn