Diageo raises Halico stake to 30%

24th Aug 2011 09:11

FTSE 100 drinks giant Diageo, famous for its Guinness-branded stout, is to acquire an additional 5.07% interest in Vietnamese spirits group Halico for £6.4m, taking its total stake to 30%.Diageo said that it has successfully closed a public offer for the acquisition and is committed to purchase Halico shares at 213,600 Vietnamese dong (£6.21) per share.Prior to the public offer, the firm had a 24.93% equity stake in Halico.The two companies entered into a strategic partnership in January that will see Diageo assist Halico in areas such as branding and distribution. "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," Diageo said."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," said Gilbert Ghostine, Diageo Asia Pacific's president.Separately, Diageo also announced that it has completed the acquisition of Mey Içki, the leading spirits producer and distributor in Turkey, following the receipt of the necessary regulatory clearances. Mey Içki's enterprise value for the purchase is $2.1bn (£1.3bn).Shares fell 2.58% lower to 1,093p at 09.31 on Wednesday morning.BC