I became an honorary Gin Rectifier last night (May 9). I took an oath and now I am duty bound to promote the best interests of gin.
The £14m acquisition would take Diageo’s share in Halico to 45.52%. The branded spirits firm, said to be the leader in Vietnam, produces the Vodka Hanoi brand.
Diageo said that its international portfolio - led by Johnnie Walker, Smirnoff and Baileys - would be developed and distributed in Vietnam independently of Halico, through its wholly owned subsidiary Diageo Vietnam.
While the public offer for the Halico shares opened on May 11 2012 and closed on June 14 2012, Diageo doesn’t expect the transaction to be completed until June 24 2012.
The price of the public offer was VND213,600 per share, the same price as Diageo’s previous purchases of Halico equity.
Gilbert Ghostine, president of Diageo Asia Pacific said: “We are pleased to further participate in Halico’s growth potential and success by increasing our equity investment, which is an expression of our long term commitment both to Halico and to Vietnam.”
Diageo first entered into a “strategic partnership agreement” with “Vietnam’s leading domestic branded spirits producer” in January 2011.
Ho Van Hai, director of Halico, said: “Diageo continues to demonstrate its commitment under the strategic partnership agreement, assisting Halico to strengthen the Vodka Hanoi brand.
“We look forward to long term co-operation between Diageo and Halico under the strategic partnership agreement and the positive effects it will continue to have on our business.”
According to Diageo, it will assist Halico in “enhancing its capabilities across a range of functions”, including “innovation, branding, supply and distribution”.