AB-InBev sells SABMiller’s stake in Distell

The business must be solid if a pension fund buys into it. In June 2016 the South African Competition Commission would only approve AB-InBev’s acquisition of SABMiller if AB-InBev sold SABMiller’s 26 percent stake in local wine and drinks group Distell, the manufacturer of the Savannah cider brand.

The competition watchdog gave AB-InBev three years to dispose of the stake valued at USD 640 million based on its closing price in mid-December 2016, when the sale was announced.

Distell’s other large shareholders, Remgro and Capevin Holdings, together control about 53 percent. But since they would not exercise their pre-emptive rights, the stake went to the state-owned pension fund Public Investment Corp which oversees the bulk of the South African government’s pension fund money.

In the year to 30 June 2016, Distell saw turnover rise 9.6 to 21.5 billion rand (USD 1.6 billion) and operating profit increase 12.8 percent to 2.9 billion rand (USD 210 million).