- Nigerian Breweries Plc is considering acquiring Distell Wines and Spirits Nigeria Limited
- Distell Nigeria, a subsidiary of Heineken Beverages, engages in local wine production and importation of alcoholic beverages
- Heineken presented the company to the Board of Directors of NB, and the offer is currently being evaluated
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Nigerian Breweries Plc is contemplating the acquisition of Distell Wines and Spirits Nigeria Limited.
Distell Nigeria is a subsidiary of Distell International Limited which is 100% owned by Heineken Beverages (Holdings).
According to NB corporate filings, it revealed that there is an offer on the ground from Heineken Beverages for Nigerian breweries to buy 80% shareholding in Distell Nigeria.
Distell Nigeria's brand portfolio features renowned names such as Amarula, JC Leroux, Nederburg, Drostdy Haf, 4th Street, Bain’s, Knights, Chamdor, Hunters and Savanna.
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Nigerian breweries decision
Nigerian Breweries' Board of Directors is considering the deal after a meeting on May 30, 2023.
During the meeting, the board resolved to thoroughly evaluate the offer, seeking guidance from external legal and financial advisors.
A statement from the company Uaboi Agbebaku reads:
"Nigerian Breweries Plc (“NB” or “the Company”) hereby informs the Nigerian Exchange Limited and the investing public 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 (“Heineken Beverages”) of South Africa, for NB to acquire Heineken Beverages’ majority interests (via Distell International Limited) in Distell Wines & Spirits Nigeria Limited (“Distell Nigeria”).
"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."
If the acquisition proposal is accepted, it would represent a notable collaboration between two prominent players in the alcoholic beverage sector and could lead to exciting developments in the Nigerian market.
Nigerian Breweries blames CBN
Meanwhile, in another report, Nigerian Breweries disclosed that it experienced a decline in revenue of N10.71 billion in its Q1 2023 financial result.
The NB board attributed the drop in revenue to several challenges, including CBN's naira redesign policy.
The CBN announced the withdrawal of the old 1000, 500, and 200 naira notes in February, which led to a severe cash scarcity.