• Thursday, June 20, 2024
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Nigerian Breweries seeks shareholders’ approval for Distell’s acquisition

Shareholders approve Nigerian Breweries N600bn rights issue as devaluation risk weighs

Nigerian Breweries (NB) Plc, the country’s largest brewer, has sought the approval of its shareholders to acquire an 80 per cent stake in Distell Wines and Spirits Nigeria Limited (Distell Nigeria).

The proposed acquisition is part of NB’s strategy to expand its product portfolio beyond beer and into wines, spirits, and flavoured alcoholic beverages.

According to a notice filed with the Nigerian Exchange Limited, the meeting is scheduled to be held next month in Lagos.

Part of the notice read, “Following the conclusion of a detailed review of the Offer, the Board met at a special meeting on the 16th of November 2023 and resolved as follows: a) To recommend to Shareholders in a general meeting for their consideration and approval, the acquisition of 80 per cent economic interest, voting, and other rights held by Heineken Beverages (Holdings) Limited in Distell Wines & Spirits Nigeria Limited, which interests and rights are held through Distell International Holdings Limited, and 100 per cent of the import business of Heineken Beverages (Holdings) Limited in Nigeria (including the license to market, distribute and sell the imported products, as well as produce any of the imported brands locally).”

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In May, the Board of Nigerian Breweries Plc said it received an offer to acquire the majority stake in Distell Wines from Heineken Beverages (Holdings) Limited. Distell Nigeria is involved in the local production of wines and ciders; as well as the importation of wines, spirits and flavoured alcoholic beverages.

The proposed acquisition is subject to the regulatory approval process.

The company said that the acquisitions “align with its strategic objective of expanding its current product offerings beyond beer to include, wines, spirits, and flavoured alcoholic beverages. It also provides the Company with growth opportunities and long-term profitability.”

Heineken Beverages owns 100 per cent of Distell International Limited, whose subsidiary is Distell Nigeria.

Distell Nigeria founded in 2018 has its headquarters in Lagos.