Article Summary
- The Board was presented with an offer from Heineken Beverages (Holdings) Limited of South Africa, for NB to acquire Heineken Beverages’ majority interests in Distell Wines & Spirits Nigeria Limited.
- The Board resolved to consider the offer in detail with support from external legal and financial advisers and thereafter make a decision thereon in the coming weeks.
- Distell International Limited owns 80% shareholding in Distell Nigeria, which was founded in 2018 with its headquarters in Lagos, Nigeria.
Nigerian Breweries Plc has said that it is considering an offer to acquire 80% shareholding in Distell Wines & Spirits Nigeria Limited.
This was contained in the company’s notice to the Nigerian Exchange Limited and obtained by Nairametrics.
The company in a statement signed by Uaboi G. Agbebaku, Company Secretary, disclosed that “at a specially convened meeting of the Board of Directors of the Company held on 30th May 2023, the Board was presented with an offer from Heineken Beverages (Holdings) Limited of South Africa, for NB to acquire Heineken Beverages’ majority interests (via Distell International Limited) in Distell Wines & Spirits Nigeria Limited”.
The company said;
- “The Board resolved to consider the offer in detail with support from external legal and financial advisers and thereafter make a decision thereon in the coming weeks. The outcome of the decision will be communicated in due course.”
What you should know
Nigeria Distell Nigeria is a subsidiary of Distell International Limited (100% owned by Heineken Beverages).
Distell International Limited owns 80% shareholding in Distell Nigeria, which was founded in 2018 with its headquarters in Lagos, Nigeria.
Distell Nigeria’s operations are in two folds: Local production of wines (still and sparkling) and ciders; and the Importation of wines, spirits, and flavoured alcoholic beverages from Distell Group in South Africa.
Its brand portfolio includes Amarula, JC Leroux, Nederburg, Drostdy Haf, 4th Street, Bain’s, Knights, Chamdor, Hunters, and Savanna.
Shareholders of Nigerian Breweries Plc recently endorsed the dividend payout of N13.87 billion for the 2022 financial year.
The dividend was approved at the 77th Annual General Meeting of the company held in Lagos on Wednesday, April 26, 2023.
The shareholders authorized an intercompany loan of 110 million euros from Heineken International, which is meant to settle foreign currency-denominated payment obligations of the company.
Speaking during the Annual General Meeting, the outgoing Chairman of the company’s Board of Directors, Chief Kola Jamodu, explained that each shareholder would receive a final dividend of N1.03 having earlier received an interim dividend of 40k that was approved in October 2022.
Jamodu noted that despite the market’s competitive nature, the company maintained its market leadership position while ensuring value to the business and its esteemed shareholders.
He said that the company had demonstrated strong resilience under difficult economic circumstances, which were occasioned by inflation and low disposable income.
