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