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30.03.2004 Business & Finance

GGL explains transactions with GBL

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Accra, March 30, GNA - Guinness Ghana Limited (GGL) on Tuesday said the rationale for the transaction between their company and the Ghana Breweries Limited (GBL) remained very strong and therefore, updated the public about the proposed transaction. This was contained in a statement issued by the Ghana Stock Exchange.

The statement said, following consultations, GGL had tabled a revised offer applicable to all shareholders, comprising a cash offer together with a share alternative and all GBL shareholders would be given an opportunity to elect for either cash or shares. The details of the offer given indicated that a cash offer would be made to all holders of the Ghana Breweries shares on the basis that each Ghana Breweries share gains an amount of 1,425 cedis in cash.

It said, as an alternative to the cash offer, Ghana Breweries shareholders may instead elect to receive new Guinness Ghana shares as follows: for each Ghana Breweries shares 0.134 new Guinness shares. The offer was based on the underlying valuations of the two businesses following a very detailed and rigorous valuation process.

The statement said since the announcement in December 2003, there has been some movement in the share price of both companies. "This would appear to be on the basis of speculations that the term of the offer may be varied. There is no intention to vary the current offer which is based upon fair valuations of both companies." It said the transactions remains subject to certain approvals, including those from the Ghana Stock Exchange and the Security and Exchange Commission, stating that, once all approvals have been received, a formal offer documents would be sent to all GGL and GBL shareholders. Meanwhile, there had been a suspension of trading in GBL and GGL and trading in the shares of GBL and GGL would resume on Friday, April 2, 2004.