Shares of East African Breweries Limited (EABL) surged Friday on the Nairobi Securities Exchange after Diageo disclosed plans to raise its stake in the brewer.
EABL closed its last trading day (Friday, October 14, 2022) at Ksh 170.00 per share, recording a 23.2% gain over its previous closing price of Ksh 138.00.
As a result, its market capitalization at the bourse rose by Ksh 25.2 billion to Ksh 134.3 billion on Friday. Between July 15 – October 14, 2022, EABL traded a total volume of 8.51 million shares over the period, with an average of 135,019 traded shares per session.
Diageo plc has offered Ksh 22.73 billion to acquire additional shares in its subsidiary East African Breweries Plc (EABL). The offer represents 14.97% of the issued share capital of EABL, which is listed on the Nairobi Stock Exchange.
“It is a demonstration of Diageo’s long-term confidence in EABL and in the East African alcoholic and non-alcoholic beverage market and economy,” Diageo said in a public announcement on Friday.
EABL’s profit for the full year ended June 2022 rose by 124 per cent to Ksh 15.6 billion. The brewer’s net sales increased by 27 per cent yearly to Ksh 109.4 billion.