Distilleries to buy HEINEKEN’s Lankan operations; share price gains

Saturday, 18 November 2023 00:43 - - {{hitsCtrl.values.hits}}

Distilleries Company of Sri Lanka PLC (DCSL) announced yesterday it has signed a Sales and Purchase Agreement with HEINEKEN Asia Pacific Ltd. to acquire the latter’s Sri Lankan operations.

Under the agreement, DCSL will acquire shares in Heineken Lanka and agree Trademark Licence Agreements for HEINEKEN’s international brand portfolio in Sri Lanka comprising HEINEKEN, Tiger and Anchor.

DCSL said its local knowledge and expertise and production and distribution of liquor in the Sri Lankan market, combined with the brewing and marketing expertise of HEINEKEN, will be able to deliver quality beer brands at scale, providing more choice and an exceptional experience to consumers in Sri Lanka.

DCSL said final consideration will be determined at the time of share transfer.

The announcement sparked cheer among investors in the Colombo stock market. DCSL share price gained by 8% or Rs. 2 to close at Rs. 27. Over 4 million DCSL shares changed hands via 335 trades for Rs. 111 million.

Separately HEINEKEN Asia Pacific Regional President Jacco van der Linden said: “In recent years, we have been exploring options to transform our business in Sri Lanka in anticipation of future trends in the market. Our international premium portfolio, comprising the HEINEKEN, Tiger and Anchor brands, is attractive to the Sri Lankan market. We are pleased to have found DCSL, who can realise the full potential of our brands.”