E-Malt.com News article: 995

The Dutch brewing force, Heineken, announced on May 2, 2003 that it had signed an agreement with representatives of the shareholders of Getränke-Beteiligungs-AG ('GeBAG') to be in a position to acquire a majority stake in BBAG Österreichische Brau-Beteiligungs-Aktiengesellschaft ('BBAG'), the leading Austria based brewery group. Heineken will acquire up to 100%, the company said in a press release, but not less than 75%, of the shares in GeBAG, which itself holds 68.7 % of BBAG's share capital. GeBAG's shareholders will be offered a total consideration of EURO 769 million for 100% of GeBAG. The offer is open for six weeks and closes on 13 June 2003. Closing of the transaction is subject to customary regulatory approvals.

Chairman of the Executive Board of Heineken N.V., Thony Ruys stated: "Together with BBAG we create the leading brewer in Central Europe. Both our operations and brand portfolios make a perfect match. Moreover, I believe the cultural fit between the management of our two companies is very powerful. The new Brau Union will combine the local heritage and know-how of our Austrian partner and their wealth of experience in the region and Heineken's expertise as the international brewer. I'm looking forward to having Karl Büche as fellow member of the Executive Board of Heineken N.V."

“Once the transaction is completed, Heineken will launch a public offer for the outstanding shares (the free float) of BBAG and its sub-holding Brau Union AG ('BU'). Heineken will make offers at prices of EUR 124.00 per BBAG share and EUR 127.27 per BU share, with such prices implying premia for BBAG and BU free-float shareholders, based on trading prices as at 30 April 2003, of 34% and 45%, respectively. These offers will be made in accordance with the Austrian Takeover Act and are expected to be made in the final quarter of 2003.”

BBAG has breweries in five countries in Central Europe: Austria, Poland, the Czech Republic, Hungary and Romania. After completion of the transaction, Heineken and BBAG will combine all their operations in Central Europe in GeBAG, which will be renamed Brau Union AG. Brau Union AG will be responsible for all operations in 13 Central European countries, namely: Austria, Poland, the Czech Republic, Romania, Hungary, Serbia-Montenegro, Slovakia, Bulgaria, Croatia, Bosnia-Herzegovina, Slovenia, Macedonia and Albania.

“The acquisition of BBAG will extend Heineken's leadership in Continental Europe and the combined business will be the clear market leader in Central Europe. The combination of Heineken and BBAG offers an excellent platform for further growth. In 8 of the 13 countries in this region (namely; Austria, Poland, Hungary, Romania, Bulgaria, Slovakia, Macedonia and Albania) Heineken will have #1 positions, which can be further optimised and extended, and to which the Heineken brand and the international beer portfolio can be added. In addition, Heineken will have a number two position in Croatia, a strong regional foothold in the Czech Republic and a valuable export position in the remaining other three countries of the region (Serbia- Montenegro, Slovenia and Bosnia-Herzegovina),” the company said.


06 May, 2003