Diageo, the international food and drinks company, has today announced that it is developing the option of a partial flotation of Burger King on the NYSE as part of its commitment to maximising value for shareholders.
Dennis Malamatinas, who is currently CEO of Burger King, has decided that he wishes to spend more time in the United Kingdom and that this is an appropriate time for him to leave Burger King. Accordingly he will resign from the Diageo Board with effect from August 30th 2000. Diageo has therefore begun an executive search to appoint a new world wide head of Burger King, based in Miami, who could lead a flotation of the company.
Until the new Burger King CEO is in place Colin Storm, currently CEO of Guinness plc will be appointed CEO of Burger King. Stuart Fletcher, who is currently Managing Director of Developing Markets for Guinness will assume the lead in the management of Guinness.
Commenting on this announcement John McGrath, Group CEO of Diageo, said:
“As part of our commitment to managing for value we have looked at a number of strategic options for Burger King. We believe that a partial flotation of the company, which opens the possibilities of a demerger or a full flotation at a future date, is the option we must now develop. We are therefore taking the necessary preparatory steps. The first of which is to provide the management continuity, which a successful flotation will require.
“Colin Storm has a remarkable depth of business experience and I am confident that he will make a significant contribution during this transition. His recent experience in successfully leading the programme of change which has taken place in Guinness is extremely relevant to the transformation programme which Burger King is now rolling-out.
“Stuart Fletcher has been a key member of Colin’s team at Guinness and is the right person to lead the team there as it continues to build Guinness as a key value driver in Diageo.
“Dennis Malamatinas leaves Diageo with our very best wishes for his future. We fully understand his decision to spend more time in the UK and be closer to his family.”