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Cape Town - If British liquor group Halewood International’s bid to buy KWV should succeed, the two companies could be fully integrated and listed on the JSE within two years.
A step such as this would unlock value for all shareholders.
This was the view expressed by Mike Veysie, managing director of Halewood in South Africa, in an interview with Sake24 on Wednesday.
Veysie confirmed that Halewood had sent a letter to KWV last week, announcing its intention to acquire KWV. The letter had been drawn up with the assistance of the group’s advisers, Deloitte, and in terms of the Securities Regulation Panel’s requirements for such a step.
By the time of the interview on Wednesday, the day the KWV board was to meet, Veysie had not yet been apprised of its decision.
Veysie said that for the past 18 months Halewood had held discussions with KWV on possible collaboration.
When his company had heard that Pioneer wanted to buy KWV, it decided to make an offer, as well, because of the perfect synergy between the two companies which could be employed to the benefit of both.
These synergies included Halewood’s established distribution network in the country and offshore – while KWV was currently contracting out its distribution.
KWV’s had a long turnaround time for products like wine and brandy, whereas Halewood’s products were quickly produced and sold.
He said the name Halewood International might not be very well known in South Africa, but the company’s brands needed no introduction. Consumers had, for instance, for the past two years indicated a product such as Red Square as the top spirit cooler in the domestic market.
Other Halewood products in South Africa include Lamb’s Navy Rum, Lambrini, Irish Meadow and Maguires Cider.
For business news in Afrikaans, go to Sake24.com.
