Nigerian Breweries Shareholders Approve 80% Distell Stake Acquisition
The shareholders of Nigerian Breweries Plc have approved the acquisition of 80 per cent stake in Distell Wines and Spirits Nigeria Ltd. (Distell Nigeria) and the import business of Heineken Beverages (Holdings) Ltd.
This is contained in a statement signed by Mrs Sade Morgan, the company’s Corporate Affairs Director, on Thursday in Lagos.
The statement said the approval was given at the company’s Extraordinary General Meeting (EGM).
Morgan said with this development, the company’s board would proceed to conclude the transaction that would give Nigerian Breweries Plc the majority stake in Distell Nigeria.
“It would also give Nigerian Breweries the exclusive right to import, market, and distribute in Nigeria, Heineken Beverages’ wines, spirits, and ciders brands from South Africa, including the right to produce any of the imported brands locally,” she said.
The company’s Chairman, Mr Asue Ighodalo, explained that the acquisition aligned with the company’s vision to become a total beverage company, by adding wines and spirits to the product portfolio to cater to its diverse consumer needs.
“This acquisition is part of efforts to provide access to a complementary multi-category portfolio of fast-growing brands of wines and spirits market segment and capture significant growth opportunities in the wines and spirits segment of the brewing industry,” Ighodalo said.
The Company’s Secretary, Mr Uaboi Agbebaku, added that the consideration for the acquisition approved by the shareholders was about N7 billion.
Agbebaku revealed that the company had earlier received a confirmation from the Federal Competition and Consumer Protection Commission that the transaction would be treated as internal restructuring.
This, he said, meant that no further regulatory approval process would be required.
“The parties to the transaction will now proceed to agreeing the final terms and conditions of the sale and purchase agreement with the aim of concluding the transaction in the first quarter of 2024,” Agbebaku said.
Meanwhile, the National Coordinator of Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, lauded the company for taking a decisive step to expand the business amidst the complex and challenging business environment.
Distell Nigeria is involved in the local production of wines and ciders under license from Heineken Beverages.
With the acquisition, Nigerian Breweries will have access to both local production and importation of wines, spirits, and flavoured alcoholic beverages brands from South Africa. Naira Devaluation Deepens Economic Crisis in Nigeria
They include brands such as Amarula Crèam Liquor, JC Leroux, Nederburg, Drostdy Haf, 4th Street, Bain’s Whiskey, Knight Whiskey, Chamdor wine ranges, Hunters and Savanna.
