Heineken-Distell deal shows South Africa has underpriced quality assets

By Xolisa Phillip, in Johannesburg
Posted on Monday, 21 November 2022 13:27

A barman serves Heineken beer at the company's Sedibeng, Midvaal brewery in Johannesburg, South Africa. REUTERS

Heineken’s acquisition of Distell has indicated that South Africa boasts many undervalued assets due to uncertainty surrounding its business environment, Marlo Scholtz from Sanlam Investments tells The Africa Report.

“It [the deal] tells you there are a lot of quality assets that sit in South Africa which are still mispriced because of the overarching risk associated with the country,” says Scholtz, the head of equity research and a portfolio manager at the Johannesburg-based company.