- Nigerian Breweries is eyeing major expansion with an 80% stake in Distell Wines & Spirits Nigeria
- The company made the proposal before shareholders this week, requesting approval for the acquisition
- The company emphasised that this strategic move is in line with its objective to diversify its product portfolio
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
Nigerian Breweries Plc has declared its intention to organise an Extraordinary General Meeting (EGM) of shareholders to secure an 80% acquisition of Distell Wines & Spirits Nigeria Limited.
This information was disclosed in the official notice addressed to the Nigerian Exchange Limited and the investing public, as obtained by Legit.ng.
NB Plc seeks shareholders' approval for Distell Nigeria acquisition
According to the statement, signed by Uaboi G. Agbebaku, the Company Secretary, the decision to pursue the acquisition was reached after a comprehensive assessment of the offer.
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The Board convened for a special meeting on Thursday, November 16, 2023, and adopted the resolution outlined in the statement.
The notice indicates that the EGM will take place on Wednesday, December 20, 2023, at Oriental Hotel, Lekki Expressway, Victoria Island, Lagos
The proposition additionally seeks endorsement for the complete acquisition of Heineken Beverages (Holdings) Limited's import business in Nigeria, encompassing the license for marketing, distribution, and sales of the imported products.
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).
Earlier in May 2023, the Nigerian Breweries Plc Board announced that it had received a proposition from Heineken Beverages (Holdings) Limited to acquire a controlling interest in Distell Wines.
The company emphasised that this strategic move aligns with its objective to diversify its product portfolio beyond beer, encompassing wines, spirits, and flavoured alcoholic beverages.
This initiative is expected to present growth prospects and contribute to the company's long-term profitability.
The company, which had experienced one of its worst sales in the first quarter of 2023, had quoted over N25 billion worth of Commercial Papers on the FMDQ Securities Exchange Limited as it searched for cash to boost its operations.
Interesting details about Distell Nigeria
Distell Nigeria is a Distell International Limited subsidiary wholly owned by Heineken Beverages.
Distell International Limited holds an 80% ownership stake in Distell Nigeria, established in 2018, and is headquartered in Lagos, Nigeria.
The company's diverse brand portfolio features well-known names such as Hunters, Amarula, JC Leroux, Chamdor, Savanna, Nederburg, Knights and others.
Nigerian Breweries Announces Price Adjustments
In related news, Legit.ng had reported that Nigerian Breweries Plc had declared a price adjustment for all its products, set to take effect from August 10, 2023.
The company conveyed in a formal communication that this price revision was deemed essential due to the sustained escalation in input costs, necessitating measures to mitigate the resulting impact.
The decision directly results from the increasing expenses associated with raw materials, contributing to a complex financial landscape for businesses.
The company emphasised that the price increase represents a measured adjustment, considering Nigerians' current standard of living.