Heineken NV will grant Tempo a license to brew and market Heineken brand beer in Israel.
Tempo Beer Industries (TASE:TMPO) is strengthening its ties with Heineken NV (HINKF.PK; HINKY.PK; AEX:HEIN). Heineken and Tempo today announced the establishment of a new company in Israel, which will handle all of Tempo's beverages activities and brew Heineken brand beer in Israel.
Heineken, which has owned 17.8% of Tempo until now, will own 40% of the new company and invest $14.5 million in set-up costs. Tempo will own 60% of the new company. Tempo said the new company would be valued at $69.5 million.
Heineken and Tempo said Tempo would transfer production of soft drinks, beer, fruit juices and mineral water to the new company. In addition, Heineken will grant Tempo a license to brew and market Heineken brand beer in Israel.
Tempo is controlled by the Podhorzer, Bar and Bornstein families. The company is believed to control half of Israel's beer market.
Published by Globes [online], Israel business news - www.globes.co.il - on January 2, 2005