Angostura up for sale?

Published: Thursday July 10, 2008

CL Financial sources yesterday dismissed reports that the Laventille-based alcohol and bitters producer was up for sale to a South African concern named Distell.

The reports of a significant, new transaction that could have a material impact on the Angostura share come amid a lengthy tour of sub-Saharan Africa—including Ghana, Tanzania and South Africa—undertaken by Lawrence Duprey, who is chairman of both CL Financial and Angostura.

The reports also come in the context of a 16 per cent increase in the price of the Angostura share on the local stock market in the last eight trading days.

Speaking yesterday with the Trinidad and Tobago Guardian, executive director of Angostura, Michael Carballo said, “I have not heard any reports that Angostura is up for sale. As far as I know, it is not up for sale. The chairman (Lawrence Duprey) has not discussed that with me.”

Other sources told the Guardian, however, that a deal with the South African spirits producer was being actively pursued.

Carballo said the company was focussing on finalising the acquisition of Jamaican rum conglomerate Lascelles de Mercado by July 28 by paying the Jamaican company’s shareholders US$326 million for an 87 per cent stake.

“There is too much value to be gained from our acquisition of Lascelles de Mercado for that (a sale of the company) to be on the cards,” said Carballo, adding that the acquisition of Lascelles de Mercado would create a Caribbean spirits behemouth with sales of US$1 billion per annum.

Carballo admitted that he knew of Distell, the company with which Angostura has been linked. He said that Distell entered into a joint venture arrangement with Burn Stewart Distillers, the Angostura group’s scotch producer based in Scotland, to manufacture, promote, distribute and sell Burn Stewart brands in sub-Saharan Africa.

Carballo said the joint venture arrangement was potentially very attractive for the local group.

For the year ending December 31, 2007, Angostura Holdings reported a loss of $137.4 million compared with a net profit of $187.8 million in 2006.

The company reported a loss largely as a result of the reversal of its net non-cash gains in relation to market value adjustments on Belvedere-related financial instruments recorded in 2006, Duprey said in his 2007 annual report.


Source: Trinidad Guardian Newspapers
http://www.guardian.co.tt/business2.html