Diageo Kenya Limited has expressed interest in acquiring 118.4 million East African Breweries Limited (EABL) shares at KSh192.
The 118.4 million targeted shares represent 14.97 per cent of the total shareholding at EABL.
The EABL shares currently trade at KSH138.00 per share.
On Friday, October 14, 2022, EABL closed at Ksh 171.00 KES per share on the Nairobi Securities Exchange (NSE), a 23.9% gain over its previous closing price of Ksh 138.00.
In a notice, it has written to the Capital Markets Authority (CMA) over its intention to cement its majority shareholding in the firm.
Cautionary statement on proposed acquisition by Diageo Kenya Ltd of up to 118,394,897 ordinary shares of EABL PLC from other shareholders. pic.twitter.com/S8D7CH7hOo
— East African Breweries PLC (@EABL_PLC) October 14, 2022
If the CMA approves Diageo Kenya’s shares purchase, the buyer will push its shareholding from 50.03 per cent to 65 per cent (514,003,331 shares).
“Diageo Kenya, therefore, currently has effective control of EABL within the meaning of the take-over regulations,” said the company.
Diageo plans to acquire the shares on January 30, 2023, if it gets the regulator’s approval.
The East African Breweries Limited reported a 123.7% increase in Profit After Tax (PAT) to Ksh 15.6 billion in FY22 from Ksh 7 billion in FY21.
