[1/2]  A bottle of Tusker Malt beer is seen inside a crate at the East African Breweries Limited factory in Ruaraka factory in Nairobi, Kenya April 6, 2018. Picture taken April 6, 2018. REUTERS/Thomas Mukoya/File Photo
NAIROBI, Oct 14 (Reuters) – Diageo Plc (DGE.L), the world's largest spirits maker, has offered to buy additional shares in Kenya's East African Breweries (EABL.NR) to boost its stake by a third to 65%, it said on Friday.
Diageo is offering to buy 118.39 million shares at 192 shillings ($1.59) each, the multinational drinks group said in a statement, amounting to a 40% premium over the market price.
The offer closes on March 10, next year, Diageo said, adding that it will not seek to take over the entire company should it attain its desired level of ownership, and it will keep the company listed.
Diageo has been seeking to increase its stakes in African breweries and distilleries due to rising consumption across the continent. Last year, in neighbouring Tanzania, it raised its equity holdings in Serengeti Breweries.
The resilience shown by EABL during the COVID-19 pandemic, Diageo said was a factor that persuaded it to seek an increase in stake.
Like other frontier and emerging markets, the Nairobi bourse has been suffering from a bear run caused by interest rate hikes in advanced economies.
The drop in prices will make Diageo's offer attractive, as investors who have been buying the shares in recent months look to take a "chunky" profit, said a market participant, who described the timing as "perfect."
($1 = 120.8000 Kenyan shillings)
Our Standards: The Thomson Reuters Trust Principles.
Serie A soccer club Juventus does not need a fresh capital injection, the chief executive of controlling shareholder Exor said on Wednesday.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved