Diageo is raising its stake in the Vietnamese spirits producer

Diageo is raising its stake in the Vietnamese spirits producer

Diageo is set to increase its stake in Vietnam's Hanoi Liqour Joint Stock Co to 45.52% after completing a public offer. 

The drinks firm said today (15 June) that it hads closed a public offer to acquire an extra 10.62% in the sprits producer for around GBP14m (US$21.8m). It expects to complete the transaction on 24 June. 

It is the second time in the space of a year Diageo has upped its stake in Hanoi Liqour Joint Stock Co (Halico), owner of vodka brand Vodka Hanoi. Last August, Diageo raised its stake to 30%, as part of its strategy to expand in emerging spirits markets. 

This came off the back of Diageo entering into a strategic partnership agreement with Halico in January last year. 

Gilbert Ghostine, president of Diageo Asia Pacific, said: “We are pleased to further participate in Halico’s growth potential and success by increasing our equity investment, which is an expression of our long term commitment both to Halico and to Vietnam.”

Ho Van Hai, Halico's director, said that the company is lookng forward to "long term co-operation between Diageo and Halico under the strategic partnership agreement and the positive effects it will continue to have on our business.”