SOUTH Africa’s Distillers Corporation is to buy Stellenbosch Farmers’ Winery in a deal worth R515m to create the country’s biggest wine and spirits group. The deal will be settled by the issue to SFW of 55.58 million new Distillers shares, valued at around 927 cents per share, and will mean that SFW will hold 28.4% of the ordinary share capital of Distillers after the acquisition. Distillers is an investment holding company whose subsidiaries are involved in the production and wholesale distribution of branded spirits and wine. SFW produces wine, spirits and alcoholic fruit beverages. The combined group will control about 60% of South Africa’s lucrative wine and spirits market, which accounts for between 35 and 37% of the country’s alcohol market, one analyst said. – Reuters