Diageo Completes Public Offer to Acquire Additional Stake in Halico

Prior to the Public Offer, Diageo had built a 24.93% equity stake in Halico in two phases; purchase of 18.67% from VinaCapital and a further 6.26% from other shareholders by way of an over the counter acquisition.

Aug 25 2011 --- Diageo, the world’s leading premium drinks business, has successfully closed a Public Offer to acquire an additional 5.07% stake in Hanoi Liquor Joint Stock Company in Vietnam for consideration of approximately £6.4 million. The Public Offer opened on 21 July 2011 and closed on 19 August 2011.

Diageo is now processing the clearing procedures to fully complete the transaction. Diageo has committed to purchase Halico shares at 213,600 VND per share from shareholders who participated in the Public Offer, increasing Diageo’s total stake in Halico to 30%. Prior to the Public Offer, Diageo had built a 24.93% equity stake in Halico in two phases; purchase of 18.67% from VinaCapital and a further 6.26% from other shareholders by way of an over the counter acquisition.

In January 2011, Diageo also entered into a strategic partnership agreement with Halico. Diageo’s Public Offer to increase its equity stake in Halico further demonstrates Diageo’s commitment to working with Halico as its strategic partner in the rapidly growing Vietnamese branded spirits sector. As Halico’s strategic partner, Diageo has been assisting and will continue to assist Halico by enhancing their capabilities across a range of functions, including innovation, branding, supply, distribution and corporate relations. In return, Diageo will remain a long term equity investor in Halico, Vietnam’s largest domestic branded spirits producer with the number one vodka brand, Vodka Hanoi.

Mr Ho Van Hai, Director of Halico, said, ‘We have had a very successful start to our strategic partnership with Diageo. My management team believe that Diageo’s cooperation and expertise will be highly effective for our business in Vietnam. The two teams have also built a rapport and strong working relationship. Halico and Diageo see a promising future together.’

Mr Gilbert Ghostine, President of Diageo Asia Pacific commented, ‘Diageo is confident that, by partnering with Halico, we both can successfully leverage Vietnamese consumers’ growing demand for branded spirits such as Vodka Hanoi. Our belief in Halico’s tremendous growth potential has been further reinforced by the exceptionally high standards of quality and professionalism that Halico’s team has shown whilst working with us to implement our strategic partnership.’

In parallel and separately, Diageo will continue to develop its international premium spirits portfolio, led by Johnnie Walker, Smirnoff and Baileys, through its wholly owned subsidiary Diageo Vietnam, Limited.