BrandArena: Nigerian Breweries Moves to Acquire Distell Wines & Spirits Nigeria

Thursday, 1 June 2023

Nigerian Breweries Moves to Acquire Distell Wines & Spirits Nigeria

Nigerian Breweries (NB) Plc announced it has obtained an offer to acquire majority shares (80%) in Distell Wines and Spirits Nigeria Limited, according to a regulatory filing on the Nigerian Exchange website.

The brewer informed the Nigerian Exchange Limited and the investing public that an offer from Heineken Beverages, South Africa was given to the Board of Directors at a specially convened meeting on May 30, 2023.

According to the notice, Nigerian Breweries made an offer to its board of directors to acquire Heineken Beverages' majority stake in Distell Wines & Spirits Nigeria Limited.

Distell International Limited is fully owned by Heineken Beverages and has spirits, wines and ciders within its product mix including internationally known brands like Amarula, Savanna, Chamdor and Hunter's Dry.

"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 document said.

Distell Nigeria locally produces still and sparkling wines as well as ciders in addition to importing wines, spirits and flavoured alcoholic beverages from the parent company in South Africa.

The approach from Heineken Beverages presents Nigerian Breweries with the chance to branch out into the manufacturing of such products, none of which is present in its portfolio of around 22 brands, according to the information on its website.

Nigerian Breweries reported a net loss of N10.7 billion in the quarter to March, with total assets standing to N652.9 billion.

Acquisition of property, plant and equipment for 2022 came to N97.9 billion up from N59.4 billion a year earlier, its audited earnings report showed.

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