Heineken has sought to assure stakeholders that it will ensure that Red Stripe remains identifiable as a local Jamaican brand despite its acquisition of majority shares in the company.

Addressing this afternoon’s D&G Annual General Meeting, Eugene Ubalijoro, managing director, Heineken Caribbean and Americas Export, Heineken is foremost a brewery company. He says Heineken understands what is needed to ensure Red Stripe while increasing its presence locally, remains a “Jamaican Brand”.

Ubalijoro says there were three reasons why Heineken decided to acquire majority shares in Red Stripe. He says these include the spirit of the brand, which the company is keen on maintaining.

Managing Director, Heineken Caribbean and Americas Export, Eugene Ubalijoro

Shareholders have until December 22 to decide if they will agree with the terms of the buyout of Red Stripe by Heineken. Heineken is offering shareholders US$0.259 (J$30) per share.

Heineken currently owns 73.32% of the shares in Red Stripe. Should it acquire 6.7% of the shares, the company says it intends to delist the shares from the Jamaica Stock Exchange. Upon delisting, shares will not be tradable on the floor of the JSE and all transfers of shares will render both the transferee liable for transfer tax and stamp duty.

In the same breath, Heineken says should it acquire ownership of at least 90% of the shares, it reserves the right to invoke the provisions of section 209 of the Companies Act 2004 to acquire Shares of holders who did not accept the offer. BM