Shareholders of Nigerian Breweries Plc have approved the acquisition of an 80% stake in Distell Wines & Spirits Nigeria Limited.
The approval was part of the special resolutions reached at an Extraordinary General Meeting (EGM) of shareholders held in Lagos.
This was contained in the company’s notice to the Nigerian Exchange Limited and the investing Public obtained by Nairametrics.
Shareholders’ approval for acquisition:
The statement signed by Uaboi G. Agbebaku, Company Secretary noted that at the Extraordinary General Meeting of Nigerian Breweries Plc held in Lagos State, Nigeria on Wednesday, 20th December, the resolution was proposed and duly passed:
- “That the acquisition of (i) the 80% economic interest, voting and other rights of Heineken Beverages (Holding) Limited (“HBL”) in Distell Wines and Spirits Nigeria Limited (“DWSN”), which interests and rights are held through Distell International Limited, and (ii) 100% of the import business of HBL in Nigeria, (including the license to market, distribute and sell the imported products, as well as produce any of the imported brands locally), for the Consideration of N7.01 billion (and on such other terms and conditions contained in the Transaction Circular supporting the acquisition, as well as those the parties will negotiate and agree on in a Share Purchase Agreement), be and is at this moment approved.”
Nigerian Breweries Plc announced last month that it will convene an Extraordinary General Meeting (EGM) of shareholders for an 80% acquisition of Distell Wines & Spirits Nigeria Limited.
The statement signed by Agbebaku noted that 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:
- “To recommend to Shareholders in a general meeting for their consideration and approval, the acquisition of 80% 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% 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).”
To convene an Extra-Ordinary General Meeting (EGM) of the Company to enable Shareholders to consider and approve the acquisition, amongst others.
Expansion of current product offerings:
The statement noted that the proposed acquisition, which will also be subject to any applicable regulatory approval process, aligns with the Company’s strategic objective of expanding its current product offerings beyond beer to include, wines, spirits, and flavoured alcoholic beverages.
It added that it also provides the Company with growth opportunities and long-term profitability.
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, 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.