May 18, 2010

 

 

ABDAB and Heineken Deal Closes with Commonwealth Brewery Limited announcing IPO

 

Nassau, Bahamas, May 18 2010 - Commonwealth Brewery Limited

(“CBL”) welcomes the transaction between Heineken International B.V. from the

Netherlands and Associated Bahamian Distillers and Brewers Limited (“ABDAB”)

pursuant to which Heineken acquired the remaining stakes in CBL and in Burns

House Limited (”BHL”) that it did not already own.

 

Nico Vervelde, Chairman of CBL, acknowledged the outstanding contribution of Sir Garet Finlayson as a founding member of Commonwealth Brewery and Chairman of Burns House: “He has been unwavering in his confidence in this institution. We accept his decision to exit at this time, and respect the prudent financial planning that he and his family have committed to at this stage of his very successful career. His valuable contribution as the Chairman of BHL and the Deputy Chairman of CBL will be greatly missed.”

 

Sir Garet Finlayson, Chairman of ABDAB, acknowledged Mr. Vervelde’s comments with gratitude and added  “ I could not have chosen a better partner. My relationship with Heineken has spanned thirty one (31) years. They have been with me as the chief supplier of beer to Burns House; they helped me in acquiring Bethel Robertson; and stepped up to the plate as co-founders of Commonwealth Brewery when many said that a brewery in the Bahamas was not economically viable. They played a pivotal role in the Burn’s House acquisition of Butler and Sands, and I am satisfied with the management they have provided both to companies over the years”

 

Mark Finlayson, President of ABDAB, took the opportunity to commend Leroy Archer and his team on their outstanding management over the past six (6) years, and their record breaking profits.

 

As Mark Finlayson affixed the final signature to documents consummating the Sales Purchase Agreement, Leroy Archer, Managing Director of BHL and CBL, thanked the younger Finlayson for his contributions as the former Managing Director and President of Burns House; and particularly for his role as the chief negotiator in both the Burns House acquisition of Butler & Sands of 2000, and in the negotiations which led to the present agreement between ABDAB and Heineken BV.

 

CBL will now implement a number of internal corporate restructurings and

will start the preparations for an initial public offering of 25% of its shares, which will

be sold by Heineken to the public in the Bahamas. The Bahamian government has

given 18 months for such process. However, Heineken strives that the IPO will

occur before the end of 2010. The Bahamian government has indicated to buy any

remaining shares in the IPO that will not be taken up by the public.

 

Miami based BroadSpan Capital acted as ABDAB’s exclusive financial advisor for the transactions while Chancery Law Associates acted as ABDAB’s legal advisor.