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Highland stays in Scotland
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September 10, 1999: 11:06 a.m. ET
Distiller of the Macallan malt links up with Glenfiddich maker for $1B offer
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LONDON (CNNfn) - Highland Distillers, the maker of The Macallan malt whisky, said Friday that it had agreed to a nearly $1 billion takeover by two privately owned Scottish groups, after revealing nearly a month ago that it was in talks.
Edrington, a family-owned trust that already holds a 28 percent stake in its target, has teamed up with William Grant, the family-owned distiller of the famous Glenfiddich malt whisky, to make the bid at 425 pence per share. The deal, including convertible bonds, values the entire issued capital of Highland at 601 million pounds ($980 million).
Stock of the Perth, Scotland-based whisky maker stood almost 14 percent higher in London at 410 pence in late afternoon trade. Highland said in mid-August it had received an approach.
The two bidders will form a joint venture called the 1887 Co., in which Edrington will hold a 70 percent stake, to complete the takeover.
"Edrington and Highland have been successful partners for over 100 years and I believe that the proposed transaction is good for the Scotch whisky industry and good for Scotland," said Ian Good, chairman of Edrington.
The deal brings together three of the last remaining Scottish independents in the whisky industry, which is dominated by the global beverage companies Diageo, Allied Domecq and Seagram.
William Grant was the fourth-largest producer of branded Scotch whisky, with an 8.2 percent market share, before the deal. The market is dominated by Diageo, which controls almost 45 percent of the global Scotch market.
The whisky industry has suffered as a result of the end of duty-free sales within Europe.
-- from staff and wire reports
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