Diageo ups stake in Hanoi Liquor Joint Stock Co

Diageo ups stake in Hanoi Liquor Joint Stock Co

Diageo has agreed deals to raise its stake in Vietnam's Hanoi Liquor Joint Stock Co to 30%, as part of its strategy to expand in fast-growing spirits markets.

Diageo said today (24 August) that it has signed deals to acquire a further 5.07% of Hanoi Liquor Joint Stock Co (Halico) via the the purchase of public shares in the company. It has agreed to pay GBP6.4m (US$10.5m) for the extra stake, which brings Diageo's total shareholding in Halico to 30%.

The drinks giant said that it is processing the transactions in order to "full complete" the stake increase. "Diageo is confident that, by partnering with Halico, we both can successfully leverage Vietnamese consumers’ growing demand for branded spirits such as Vodka Hanoi," said Diageo's president for Asia-Pacific, Gilbert Ghostine.

In January, Diageo announced that it would acquire an initial 23.6% stake in Halico for GBP33m, as well as establish a strategic partnership with the company. Until today's announcement, Diageo had taken its share to 24.93% via the purchase of additional shares.

Diageo continues to develop its flagship brands in Vietnam, such as Johnnie Walker and Smirnoff, outside of the Halico tie-up.

Separately today, Diageo announced that it has completed the takeover of Turkey's Mey Içki for US$2.1bn.