Distell produces Nederburg wine, Amarula cream liqueur, Savanna cider Klipdrift brandy and whisky brand Bain’s. It also has a Scotch whisky division featuring Bunnahabhain, Deanston and Tobermory.
Heineken, the world’s second largest brewer is keen to expand beyond the beer category, and sees Distell as a strong fit.
“Shareholders are advised that Heineken N.V. has approached Distell regarding the potential acquisition of the majority of Distell’s business,” said the South African firm in a statement this morning. “Bearing in mind that there can be no certainty that an agreement will be reached, shareholders are advised to exercise caution when dealing in their Distell securities until a further announcement is made.”
Shares in both firms increased in value this morning.
Remgro Ltd., an investment vehicle of South African billionaire Johann Rupert, and Public Investment Corp., Africa’s biggest pension fund, each hold a little more than 30% of Distell, according to data compiled by Bloomberg.
