(3 minutes read)
Diageo Plc, the largest spirits producer in the world, announced recently that it has proposed to purchase more shares in Kenya’s East African Breweries Limited (EABL) . This will increase its share in the latter to 65%. Diageo is making an offer to purchase 118.39 million shares at 192 shillings (US$1.59) each, representing a 40% premium over the market price.
Diageo Plc, the largest spirits producer in the world, announced recently that it has proposed to purchase more shares in Kenya’s East African Breweries Limited (EABL). This will increase its share in the latter to 65%. Diageo is making an offer to purchase 118.39 million shares at 192 shillings (US$1.59) each, representing a 40% premium over the market price. The offer is valid till March 10, 2023. The brewery also made it clear that it would not attempt to acquire full ownership of the business.
The tenacity displayed by EABL throughout the COVID-19 pandemic was exemplary and that was the reason that prompted the liquor major Diageo, to go for up its share in the Kenyan company, sources say.
Read Also:
https://trendsnafrica.com/diageo-envisions-a-green-africa/
https://trendsnafrica.com/east-african-breweries-limited-raises-stake-in-tanzanian-subsidiary/
https://trendsnafrica.com/french-multinational-to-buy-meta-abo-brewery-ethiopiaeast-africa/
Analysts are of the view that with the increase in shareholding, Diageo would view selling its products to other countries in the continent as taking advantage of the unveiling AfCFTA rules and regulations.
