Jamaica: Desnoes and Geddes Ltd submits application for delisting from the Jamaica Stock Exchange

Following the conclusion of the acquisition of shares under the buyout proposal by beverages giant Heineken, Desnoes and Geddes Ltd has submitted its application for the delisting of the company`s securities from the Jamaica Stock Exchange (JSE), with effect from March 31, the company said on March 18.

Heineken, a Swedish subsidiary owned by Heineken NV in the Netherlands, is one of the world's leading marketer of ciders and beers. Desnoes and Geddes, a Jamaican company, produces Red Stripe, Malta and Dragon.

The deal to acquire Red Stripe, announced on October 6, 2015, resulted in Diageo offloading its brewing interests in Jamaica, Malaysia and Singapore to Heineken, while Heineken acquired Diageo's 57.9 per cent stake in Desnoes and Geddes, increasing its shareholding in the company to 73.3 per cent.

Heineken, in seeking all shares outstanding, targeted the remaining 749,559,524 units at US$0.254 per stock unit. Shareholders were given a deadline of January 1, 2016 to accept, which was later extended to Thursday, January 21.

The offer closed with the acceptance of transfer of 630,339,240 units, giving Heineken a shareholding of 95.76 per cent of total issued shares.

Desnoes and Geddes ended its last year on the JSE with net profit for the period July to December of J$1.58 billion.

On Friday, March 18, the company had a market capitalisation of J$68.23 billion, trading at J$24.29 cents per share.

The October offer by Heineken was 341 per cent over the closing price of J$7.00 on October 6, the last trading day before the announcement.

23 March, 2016