InfoStride News reported that Nigerian Breweries Plc has unveiled plans to hold an Extraordinary General Meeting (EGM) for the proposed 80% acquisition of Distell Wines & Spirits Nigeria Limited. This information was disclosed in a notice to the Nigerian Exchange Limited and the investing public. The Company Secretary, Uaboi G. Agbebaku, signed the statement, revealing that the Board’s decision came after a comprehensive review of the offer.
In a resolution made at a special meeting on November 16, 2023, the Board recommended the acquisition of 80% economic interest, voting rights, and other privileges currently held by Heineken Beverages (Holdings) Limited in Distell Wines & Spirits Nigeria Limited. These interests and rights are held through Distell International Holdings Limited. Additionally, the proposal includes the acquisition of 100% of the import business of Heineken Beverages (Holdings) Limited in Nigeria, covering the license to market, distribute, and sell imported products, as well as the ability to produce any of the imported brands locally.
To facilitate this significant move, Nigerian Breweries Plc plans to convene an Extraordinary General Meeting (EGM) of the company, allowing shareholders to assess and approve the proposed acquisition. The statement emphasized that the transaction, contingent upon regulatory approval, aligns with the company’s strategic goal of diversifying its product offerings beyond beer to encompass wines, spirits, and flavored alcoholic beverages. The acquisition is seen as a strategic move providing growth opportunities and ensuring long-term profitability for Nigerian Breweries Plc.
Earlier, the company had revealed its contemplation of an offer to acquire an 80% stake in Distell Wines & Spirits Nigeria Limited. The initial offer, presented by Heineken Beverages (Holdings) Limited of South Africa, proposed Nigerian Breweries acquiring Heineken Beverages’ majority interests in Distell Wines & Spirits Nigeria Limited via Distell International Limited. A specially convened meeting of the Board of Directors held on May 30, 2023, initiated the consideration of the offer with the support of external legal and financial advisors. The company’s decision on the offer is expected to be communicated in the coming weeks.
Distell Nigeria, a subsidiary of Distell International Limited, is wholly owned by Heineken Beverages. Established in 2018 with headquarters in Lagos, Nigeria, Distell Nigeria operates in two primary areas: local production of wines (still and sparkling) and ciders, as well as the importation of wines, spirits, and flavored alcoholic beverages from the Distell Group in South Africa. The diverse brand portfolio includes well-known names such as Amarula, JC Leroux, Nederburg, Drostdy Haf, 4th Street, Bain’s, Knights, Chamdor, Hunters, and Savanna. This strategic move by Nigerian Breweries Plc could mark a significant expansion into new product categories, reflecting the company’s commitment to enhancing its market presence and securing future growth.
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