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SANTO DOMINGO. - The beverage giant AmBev bought a 51% stake in Dominican Republic’s biggest brewery (CND) form the group E. Leon Jimenes and Heineken for US$1.24 billion, the latest figure disclosed and which reveals the transaction’s complexity.

The deal could as soon as mid April, affirmed the president of the Group ELJ Franklin Leon and of the CND, Abel Wachsmann yesterday, together with AmBev for Hispanic Latin America vice president Alexandre Médicis, who’ll be the brewery’s CEO.

Wachsmannn said more than RD$8.4 billion in taxes will be paid from the sale of 41.76% of the CND’s shares.

When Reuters first revealed the deal, it reported US$1.5 billion, a figure which ballooned to US$3.5 billion on an alleged bidding war, and just yesterday Leon Jimenez said it was just US$267.0 million.

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COMMENTS
9 comment(s)
Written by: josean, 17 Apr 2012 8:02 AM
From: United States, Fighting the Dictatorship of the Narco PLD Mafia; Guillermo Moreno President 2016




As the Professor said trying to avoid paying taxes!



Written by: zooma, 17 Apr 2012 8:05 AM
From: United States

Somebody is going to become richer because of this deal. However, at my level it is all about getting a quailty product, available all the time, very cold, at a decent price.

Salud !!!
Written by: lsantiago77, 17 Apr 2012 8:47 AM
From: United States
from 3 billion to just 267 million, wow, now thats how you tell the Gov to go f**** urself haha, or i guess they might already have a backdoor deal with the guys from the dgii. when you normally sell something like a house or piece of land you get taxed up the ass. if am not mistaken its something like 10 percent i dont know exactly but 10 percent of 3.5 billion woulda been 350 million dollars in taxes that they would have had to pay if the tax was 10 percent and i think its more than that.
Written by: anthonyC, 17 Apr 2012 8:54 AM
From: United States
RD$8.4 BILLION?

That comes out to over $216 MILLION U.S.!!!!

Disgusting
Written by: bernies, 17 Apr 2012 9:52 AM
From: United States, key west fl
You guys are jumping into conclusions, It has been said that the government will receive 8.4 Billions pesos in taxes, which means this deal worth about 2.Billions USD.
Written by: Yucahu, 17 Apr 2012 10:44 AM
From: United States, Miami
We are now a Brasilian colony. Carnaval!!!!!!!!!!! Wooohooo!!!
Written by: Ricardolito, 17 Apr 2012 12:53 PM
From: Dominican Republic, calle A.Portes
There is no confusion ..you can read the staements in the NY stock exchange reports and in the Wall Street Journal...slightly more authoritive than the Dominican papers
Written by: anthonyC, 17 Apr 2012 2:24 PM
From: United States

RD$8.4 BILLION?

That comes out to over $216 MILLION U.S.!!!!

Disgusting
Written by: perlurdom, 17 Apr 2012 4:20 PM
From: United States, Bay Area, CA - (Dei sitio)
This is what Reuters reported:

(The following statement was released by the rating agency)

April 16 - Ambev's agreement to acquire 51% of Cerveceria Nacional Dominicana S.A. (CND) through two transactions for about $1.2 billion in cash plus the contribution of Ambev's assets in the Dominican Republic, is seen as a strategic positive by Fitch Ratings. The structure of the transaction, which includes various put and call options, should allow Ambev to eventually own more than 90% of CND. Fitch notes that Ambev has a great track record of integrating acquisitions and increasing the profitability of the acquired companies through a variety of initiatives that increase volumes and revenues per hectoliter, while lower per unit costs. CND should also benefit greatly from the expertise Ambev brings in terms of improving operating profits.
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