Ledaig

Distell withholds dividend as Heineken takeover talks persist

26 August, 2021

South African wine and spirits producer Distell has withheld its dividend for 2021 financial year amid ongoing takeover talks with Heineken.

The world’s second largest brewer opened talks with Distell about acquiring “the majority” of the South African company’s business in May.

“The discussions between Heineken and Distell are progressing, but several aspects still need to be considered and ultimately agreed,” said Distell in a statement to the market. “Shareholders should take note, that although discussions have progressed, there is no certainty that the remaining aspects will be successfully resolved and agreed.”

For that reason, it has put its dividend on ice for the time being. If talks with Heineken fail to bear fruit, it will declare a dividend for the year to June 30, 2021.

Distell believes that it will be in a position to provide more detailed information to shareholders on the potential transaction before the end of Q3 2021.

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.

It reported that revenue for the year to June 30 grew 26% to R28.3 billion ($1.89 billion), while profit increased by more than 500% to R1.9 billion ($130 million). Earnings per share increase by 227%.

For the year to June 30, 2020, no final dividend was declared due to uncer

Big news came from Heineken this week who revealed plans to buy South African wine and spirits maker Distell Group Holdings in a €2.2 billion deal. If approved, the transaction will include an internal restructure of Distell to create two new businesses: Newco and Capevin. The former will combine Distell’s portfolio of spirits, wine, cider and ready-to-drink beverages with Heineken’s Southern Africa and export markets business, which includes Namibia Breweries and South African whisky distillery James Sedgwick. Capevin will include the company’s remaining assets, including its Scotch whisky business, consisting of the Deanston, Tobermory and Bunnahabhain brands. As part of the agreement, Heineken will own a minimum 65% stake in Newco, while Distell’s largest shareholder Remgro will retain control of Capevin. “Together, this partnership has the potential to leverage the strength of Heineken’s global footprint with our leading brands to create a formidable, diverse beverage company for Africa,” says Distell CEO Richard Rushton. “I am excited for what lies ahead as we look to combine our strong and popular brands and highly complementary geographical footprints to create a world class African company in the alcohol beverage sector.” We’re intrigued what effect this move will have on some of our favourite single malts.

The Whisky Exchange announces 2023 Whisky of the Year

The heavily peated Ledaig 18 Year Old has triumphed in The Whisky Exchange’s annual competition in which members of the public vote to determine the Whisky of the Year.

Ledaig, produced at Tobermory distillery on the picturesque Isle of Mull, claimed the top spot in the 9th annual Whisky of the Year blind tasting hosted by The Whisky Exchange.

The name Ledaig (pronounced Led-chig) comes from the original name for the area in which Mull’s only whisky distillery is located and derives from the Gaelic term meaning 'safe haven'.

The 18-year-old expression is a deliciously fruity peated whisky, finished in sherry casks, balancing sweet, floral aromas with rich smoke and sea salt on the palate.

This year’s shortlist included a mix of whiskies from across Scotland, with some unexpected bold flavours.

After much deliberation, whisky-lovers were encouraged to critique each whisky for nose, palate and finish, and select a first and second choice via a voting form.

All whiskies in the tasting were under £85 retail price, and all ongoing, commercially available releases. In addition to Ledaig 18 Year Old, the shortlist featured:

Jura 18 Year Old (runner up)

Old Pulteney 15 Year Old (third place)

Oban Distillers Edition

Glen Grant 15 Year Old

Craigellachie 13 Year Old

Brendan McCarron, master distiller at Ledaig, said: "Ledaig 18 Year Old is truly a deliciously peated single malt Scotch that has rich and smoky sherry notes that are balanced with seaweed and light creosote in the mouth, before a long smoky finish with liquorice and sea spray notes.

Lidl release limited edition £39 19 year old Ben Bracken Islay whisky

"We are truly honoured to have impressed the blind taste panel, and titles don't get much bigger than whisky of the year.”

Dawn Davies, head buyer at The Whisky Exchange, said: “I am over the moon to see Ledaig win this year.

"It’s exciting to see a peated malt take home the prize and it really is a delicious whisky.”

“Today marks a major milestone in Distell’s journey. Our resilient business’ stand out performance and the excellence of our people have been recognised by a much-admired Global Brewer in Heineken. The offer is testament to the strength of Distell’s leading position in South Africa and growth in select African markets, alongside the value of our brands and people providing the potential to immediately unlock significant value for our shareholders. Together, this partnership has the potential to leverage the strength of Heineken’s global footprint with our leading brands to create a formidable, diverse beverage company for Africa. We will have a stronger route-tomarket with a unique multi-category portfolio, furthering our sustainable growth trajectory and ability to compete on scale. I am excited for what lies ahead as we look to combine our strong and popular brands and highly complementary geographical footprintsto create a world class African company in the alcohol beverage sector. Our combined entity will grow our local expertise and insights to better serve consumers across the region. Heineken and Distell collectively have family-owned values with strong legacies in South Africa and are committed to continuing to play a strong role in addressing critical social and economic imperatives in the country.”Heineken’s CEO and Chairman of the Executive Board Dolf van den Brink said:

“We are very excited to bring together three strong businesses to create a regional beverage champion, perfectly positioned to capture significant growth opportunities in Southern Africa. Distell is a highly regarded, resilient business with leading brands, a talented workforce and a strong track record of innovation and growth in Africa. With Namibia Breweries Limited, there are exciting opportunities to expand premium beer and cider in Namibia and grow the iconic Windhoek brand beyond its home market. Together we will be able to better serve our consumers and customers through a unique combination of multicategory leading brands and a strengthened route-to-market. The businesses share common values derived from their family heritage, long-term perspectives, entrepreneurial spirit, and respect for people and the planet. We have successfully built our business in Africa over 100 years. Today’s announcement is a vote of confidence in the long-term prospects of South Africa and Namibia and we commit to being a strong partner for growth and to make a positive impact in the communities in which we operate.”