Diageo Share Discussion Threads

[philanderer] 14/10/2015 08:35

Sell on the news by the look of it.


Unlucky to be released on a really poor market day

[redartbmud] 14/10/2015 07:56

Diageo sells Chateau and Estate wine brands and Percy Fox to Treasury Wine Estates

Diageo has agreed the sale of its major wine interests in an agreement with Treasury Wine Estates relating to the US based Chateau and Estate Wines and the UK based Percy Fox businesses for a consideration of $552 million. The net proceeds of approximately £320 million, after tax and transaction costs will be used to repay borrowings. The transaction, which is subject to regulatory approval, is expected to complete around the end of the calendar year.

Ivan Menezes, Chief Executive of Diageo, said:

"Diageo's strategy is to drive stronger, sustained performance through focus on our core portfolio and today's announcement is another element of that strategy in action. Wine is no longer core to Diageo and this sale gives us greater focus.

"With the completion of this transaction Diageo will have released £1 billion from the sale of non-core assets since the start of the financial year. This proactive portfolio approach has focused the business, enhanced our financial strength, improved our returns and strengthened the business, positioning us even more firmly to deliver our performance ambition."

Further Information

In June 2010 Diageo realised $260 million (approximately £174 million) from a sale and leaseback arrangement for certain land and facilities which Diageo Chateau and Estate Wines operates.

The transaction is approximately 1.2 pence per share dilutive to pre-exceptional eps in the first full year assuming a marginal interest rate of 2.5%. The transaction will result in an exceptional loss on disposal of approximately £150 million after tax. Diageo continues to be the guarantor under the June 2010 sale and leaseback agreement and in accounting for the disposal Diageo has fair valued the guarantee assuming it expires in 2030.

Following completion of this transaction Diageo's wine interests are limited to Justerini & Brooks Wine Merchants, the Argentinian wine business of Navarro Correas, the wine brands of Mey Icki and USL, the Chalone brand and assets and the Acacia winery and vineyard.

The whispers were correct then.

[philanderer] 13/10/2015 23:29

Diageo is expected to announce the sale of Blossom Hill, Piat d'Or and other brands on Wednesday, Sky News learns

[philanderer] 13/10/2015 20:24

13th oct Bernstein market perform tp 1920p

reiterates

[philanderer] 13/10/2015 16:09

One bright spot in my portfolio today .. chartwise 1950p looks a possibility

[philanderer] 12/10/2015 20:28

Chairman buying today...

Diageo plc (LON:DGE) insider Humer,Franz B purchased 1,094 shares of the business’s stock in a transaction on Monday, October 12th. The stock was bought at an average cost of GBX 1,822 ($27.91) per share, with a total value of £19,932.68 ($30,538.81).

[philanderer] 12/10/2015 18:03

Yep , that number should be enough to take out SAB now.


'Diageo looking better after a few shots (of cash) as Moody's gives the seal of approval for its asset swap with Heineken'

[hpcg] 12/10/2015 11:21

philanderer - talk of Inbev bidding for DGE if SAB knocks them back is not so much adding 1 and 1 to make 3, as adding an octopus and a compass to make a microwave oven. Reasons why it is obviously nonsense to even suggest:

1. The takeover of SAB is a done deal anyway, Inbev have already agreed with Altria and Santo Domingo, the interim is just about the structure of the offer for other shareholders.

2. Inbev is a global brewer, not a liquor supplier. There is no match whatsoever. The perpetual question is what does DGE do with Guinness as it does not comfortably fit with the rest of the business.

[philanderer] 12/10/2015 11:08

After SABMiller plc Will Diageo plc And Fevertree Drinks PLC Be Taken Over?

[philanderer] 12/10/2015 10:57

red, I think the problem is they all have different agendas for their own clients who receive these recommendations way before we do.

And then of course you have the 'house brokers' ;-D

[redartbmud] 09/10/2015 22:00

phil

Bit of a task there - too many numbers!
Should you weight the recommendation based on age?
Should you add a weighting based on the ranking position of the analyst? The older the note, the leaa relevant?

I'm afarid that I am not a friend of the tintins. With all of their 'high powered' expertise, and the resources at their disposal, I am staggered that they can come up with such a diverese analysis/opinion. They have the same information to analyse to death before they put out their opinions. Less experienced punters often make their decisions on the basis of the brokers' note alone.

red

[redartbmud] 09/10/2015 18:50

Suppose that is consensus then.

[philanderer] 09/10/2015 13:42

9th oct Barclays overweight tp 1950p
9th oct Credit Suisse neutral tp 1780p

reiterations

[philanderer] 08/10/2015 17:44

About time too ;-)

'Diageo breaks ground with nutrition labeling'

[philanderer] 08/10/2015 16:30

Splendid day ; nice share price rise, dividend received and blue skies with sunshine :-D

[philanderer] 08/10/2015 14:16

Chartwise for DGE 1838p looks to be the number to break, looks good for 1950p after that.

[essentialinvestor] 08/10/2015 10:56

Much appreciated Phil.

[philanderer] 08/10/2015 10:52

I`m still 80% cash, maybe overly cautious, but I just don`t see enough strength anywhere to get interest rates to head north . German numbers this morning once again very weak. Sideways at best for markets short term imho.

I`m sticking with defensive , international brands at present plus a couple of other oversold companies .. ARM and PLND.

[essentialinvestor] 08/10/2015 10:03

Hi Phil, may I ask your view on the overall markets atm,
picked up a comment of yours previously where you mentioned you were mainly
in cash, if you don't mind me asking has your cautious view altered? many thanks

[philanderer] 08/10/2015 09:49

Morning EI , good to have cash at the moment I reckon.

---------

8th oct Beaufort Secs reiterate 'buy'

[essentialinvestor] 08/10/2015 09:43

If they could exit their wines business it would be lovely,
that must be another couple of hundred million surely?.

Some divi reinvestment going on this morning I'm guessing )
mine is staying in cash atm.

[philanderer] 07/10/2015 13:23

Comment:

SABMiller is not the only drinks group in focus. Diageo has dipped 0.5p to 1818.5p as it sold its stakes in Jamaican brewer Desnoes & Geddes and Malaysia’s Guinness Anchor to Heineken. Diageo has also bought Heineken’s 20% stake in Guinness Ghana – a high growth market for the company – taking its stake to 72%. The deals bring in a net £515m. Shore Capital’s Phil Carroll said:

We see this as a further positive move in the Diageo recovery story through improving its balance sheet position. The transaction will reduce Diageo’s leverage in the current year to around 2.5 times from 2.6 times based on our forecasts. We currently have a hold recommendation on Diageo at present.

Ratings agency Moody’s was also positive. Paolo Leschiutta, vice president at Moody’s, said:

We see the assets swap announced by Diageo and Heineken as credit positive for Diageo and neutral for Heineken.

The assets swap benefits Diageo because, together with greater control of its Ghanaian business, the company plans to use the £515m from Heineken to reduce debt, which will help the company’s deleveraging efforts.

[philanderer] 07/10/2015 08:43

Morning EI , I`ve been there with Autonomy , sold the night before the bid :-)

Heineken Buys Brewing Stakes from Diageo for $781 Million

[essentialinvestor] 07/10/2015 08:38

Do I ever regret selling my SAB ((

DGE divi paid tomorrow from memory.