Heineken to take 40% stake in TBI

Heineken to take 40% stake in TBI

AMSTERDAM: Dutch brewer Heineken said over the weekend it had
signed a memorandum of understanding with the controlling
shareholders of Israeli-based Tempo Beer Industries (TBI) to
acquire 40 percent of the shares of a new beer and beverage
company in Israel.

As part of the agreement, Heineken will transfer its current
17.8 percent stake in TBI and will make an additional cash
payment of US$14.5 million.

TBI will transfer all its beer, soft drinks, fruit juices and
water activities to the new company and will own the remaining 60
percent of the shares.

The agreement also covers a license for the local production
and marketing of the Heineken brand by the new company.

Heineken said the transaction, which is subject to regulatory
approvals, would be funded from available cash resources and
should contribute to net profit from 2005.

Board member Jean Francois van Boxmeer said local production
of Heineken would accelerate growth of a brand that has already
captured a nine percent share of the Israeli beer market since
its introduction in the early 1990s.

Tempo is based in Netanya and has a 50 percent share in the
Israeli beer market. Its leading beer brands are Goldstar and
Maccabi.-- AFP