Aug 2007 Financial News

Angostura and CL Financial quit Belvedere

Aug 01, 2007

ANGOSTURA and CL Financial yesterday agreed to dispose of their 68 per cent stake in the French spirits company Belvedere for 345 million euro, which at the current exchange rate amounts to more than $3 billion, Angostura officials said yesterday.

Angostura said the Laventille-based rum and bitters producer decided to exit Belvedere because of a board struggle involving allegations that the local, publicly-listed company was unable to influence the future of the company even though it held a majority interest.

The Belvedere asset was sold by Angostura and CL Financial for about 10 per cent more than the total cost of the entire investment which was 314 million euro.

The profit from the transaction would have been boosted given the recent strengthening of the euro against the US dollar.

An Angostura official yesterday estimated that Angostura was responsible for 214 million euro out of the sale consideration of 345 million euro.

The proceeds of the sale of will be used to reduce Angostura’s debt, for new acquisitions and for brand development, officials said yesterday.

CL World Brands, a subsidiary of CL Financial, acquired an undisclosed minority stake in Belvedere in 2003.

Angostura Limited and CL World Brands increased their interest in Belvedere to 25.8 per cent in 2005 as a result of the companies investing capital in Belvedere which it used to partly finance the acquisition of another French spirits company, Marie Brizard.

The capital injection deal, which was completed last year, was said to be worth more than 300 million euros.

In June, CL Financial acquired a whisky distillery in the US from Pernod Ricard.


Source:
The Trinidad Guardian
Wednesday 1st August, 2007

http://www.guardian.co.tt/archives/2007-08-01/news10.html