Duvel Moortgat wants to leave the stock exchange

The family shareholders of Duvel Moortgat NV, the brewer of Duvel, are prepared to splash out EUR 125 million to buy all of Duvel’s shares that are not yet in their possession, the company said on 12 October 2012. The family still owns three-quarters of the shares.

The offer was set at a maximum price of EUR 95 per share, which represents a premium of 8.9 percent over the closing price on 11 October 2012. The offer is subject to certain conditions, including an acceptance threshold of 95 percent. If the offer is accepted, it will be followed by a squeeze out under the same conditions, the statement said.

Shareholders, who clung on to their shares in Duvel, will make a neat profit on the sale. Duvel’s share price has climbed to around EUR 90, from EUR 16 in 2003. Between 2009 and 2011the brewer’s sales rose to EUR 162 million from EUR 113 million, while EBIT climbed to EUR 40 million from EUR 24 million.

Although Duvel Moortgat would not give a reason for wanting to delist, the family probably thinks that there are too few benefits gained from a stock market listing. Although the brewer does not require capital to finance takeovers (whom should they buy?), the company still has to go through the stock market motions and pay fees for the listing as well as publish reports.

It was not always like this. When Duvel sought a stock market listing in 1999, this was meant to allow various family members to cash out on their inheritance. These days the family would like to exert greater control over their company. Hence the offer to shareholders.

Duvel Moortgat now owns six breweries: four in Belgium, one in the Czech Republic and one in the United States.