Spirits giant Diageo has announced that it has completed the partial tender offer to increase its aggregate equity stake in East African Breweries from the current 50.03% to 65% through its wholly-owned indirect subsidiary, Diageo Kenya.
Noting that the tender offer was oversubscribed, Diageo Kenya applied the scale-down mechanism, specified in the tender offer document, to purchase a pro-rata proportion of the shares that were tendered.
These include, among others, Tusker, Guinness, Bell Lager, Serengeti Lager, Kenya Cane, Chrome Vodka, Johnnie Walker, Captain Morgan and Smirnoff.
Although the business is concentrated on three core markets of Kenya, Uganda and Tanzania, its products are sold in more than 10 countries across Africa and beyond.
Don Papa Rum
Launched in 2012 by entrepreneur Stephen Carroll and Andrew John Garcia, Don Papa Rum is available in 30 countries, with France, Germany and Italy being its biggest markets.
Diageo said the upfront consideration for the deal is €260 million, with a further potential consideration of up to €177.5 million through to 2028 subject to performance.
"We are excited by the opportunity to bring Don Papa into the Diageo portfolio to complement our existing rums," said John Kennedy, president of Diageo Europe and India.
"This acquisition is in line with our strategy to acquire high growth brands with attractive margins that support premiumisation, and enables us to participate in the fast growing super-premium plus segment."