NB’s Shareholders Approve Acquisition Of Distell Nigeria

Shareholders of Nigerian Breweries Plc have approved the acquisition of an 80 per cent stake in Distell Wines and Spirits Nigeria Limited (Distell Nigeria) and the import business of Heineken Beverages (Holdings) Limited (Heineken Beverages).

The approval was given at the company’s Extraordinary General Meeting (EGM) held in Lagos. With this development, the Board will proceed to conclude the transaction that will give Nigerian Breweries Plc the majority stake in Distell Nigeria and the exclusive right to import, market, and distribute in Nigeria, Heineken Beverages’ wines, spirits, and ciders brands from South Africa, including the right to produce any of the imported brands locally.

Speaking during the Extraordinary General Meeting (EGM), the Board chairman, Asue Ighodalo, explained that the acquisition aligns with the company’s vision to become a Total Beverage Company, by adding wines and spirits to the product portfolio to cater to its diverse consumer needs.

“This acquisition is part of efforts to provide access to a complementary multi-category portfolio of fast-growing brands of wines and spirits market segment and capture significant growth opportunities in the wines and spirits segment of the brewing industry,” Ighodalo stated.

The national coordinator of Progressive Shareholders Association of Nigeria, Boniface Okezie, lauded the board and management for taking a decisive step to expand the business amidst the complex and challenging business environment.

The company secretary and legal director, Nigerian Breweries, Uaboi Agbebaku, added that the consideration for the acquisition approved by the shareholders is about N7 billion.

He noted the company had earlier received a confirmation from the Federal Competition and Consumer Protection Commission that the transaction will be treated as internal restructuring, saying this means that no further regulatory approval process will be required.

“The parties to the transaction will now proceed to agreeing the final terms and conditions of the sale and purchase agreement with the aim of concluding the transaction in the first quarter of 2024,” Agbebaku said.