Sunday 2 November 2014

Rs. 5.15 billion takeover of Three Coins by Lion concluded

* Brewing stopped temporarily at Meegoda, brands to be produced at Biyagama

The Rs. 5.15 billion deal under which Lion Brewery (Ceylon) PLC and its fully owned subsidiary, Pearl Springs (Private) Ltd. acquired Millers Brewery Ltd., makers of Three Coins beer was concluded on Thursday, the parties to the transaction announced in separate stock exchange filings.

"We hereby confirm that the disposal process was concluded on Oct. 30, 2014 with the trade marks and the entire shareholding in Millers Brewery Ltd. (MBL) Being transferred to Lion Brewery Ceylon PLC (LBCL) and its subsidiary, Pearl Springs (Private) Ltd. (PSPL) Respectively and the entire purchase consideration of Rs. 5.15 billion being settled by LBCL/PSPL,’’ Cargills (Ceylon) PLC, the seller, said.

Lion said that all liabilities of MBL had been settled by the previous management prior to the conclusion of the transaction.

The buyer further said that with the acquisition of the MBL trademarks, Lion has consolidated MBL’s brand portfolio to its own portfolio and they would soon commence the brewing of Sando Power, Irish Dark, Sando Stout, Three Coins Lager and Grand Blonde at the Lion production facility in Biyagama.

"Meanwhile, pending a detailed evaluation, operations at the MBL brewery in Meegoda will cease temporarily,’’ Lion said.

"The acquisition of MBL afford Lion Brewery the opportunity of taking advantage of supply chain synergies while ensuring that loyal consumers of the MBL portfolio continues to have access to their brands of choice.’’
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