Nigerian Breweries Plc announced plans to complete the acquisition of an 80% stake in Distell Wines & Spirits Nigeria Limited by the second quarter of 2024, between April and June. Hans Essaadi, Managing Director/CEO, revealed this during a pre-AGM press event in Lagos.
Following shareholders’ approval in December 2023, Nigerian Breweries has been working on the transaction with Heineken Beverages (Holdings) Limited of South Africa.
The acquisition includes 80% equity in Distell Wines and Spirits Nigeria and 100% of Heineken Beverages’ import business in Nigeria.
“This strategic acquisition aligns with our beyond beer agenda, diversifying our portfolio and strengthening our market presence in various beverage categories,” Essaadi stated. He emphasized the potential for long-term profitability through expanding into wines, spirits, and flavored beverages.Additionally, Nigerian Breweries announced plans for a N600 billion rights issue to address financial challenges stemming from Naira devaluation and high borrowing costs.
The recapitalization scheme aims to settle outstanding FX payables and reduce interest burdens, with Heineken N.V. expressing readiness to support the proposal.
Furthermore, Uaboi G. Agbebaku, Company Secretary, addressed the suspension of operations in Awo-Omamma, Imo State, and Kakuri, Kaduna State.
Despite the challenges, Nigerian Breweries remains committed to minimizing the impact on its workforce and supporting affected communities through alternative measures and social projects.
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