Nigerian Breweries Seeks Shareholder Approval for Strategic Acquisitions of Distell Wines and Heineken Beverages

Nigerian Breweries is gearing up to present a pivotal proposal to its shareholders, seeking approval for the acquisition of a substantial 60 percent stake in Distell Wines and Spirits Nigeria Limited, along with a strategic takeover of Heineken Beverages (Holding) Limited's import business in Nigeria. The announcement, disclosed in a filing with the Nigerian Exchange Limited, sets the stage for a crucial shareholder meeting scheduled to take place next month in Lagos. The notice outlines the Board's resolution after an in-depth review of the offer, stating, "To recommend to Shareholders in a general meeting for their consideration and approval, the acquisition of 80 percent economic interest, voting, and other rights held by Heineken Beverages (Holdings) Limited in Distell Wines & Spirits Nigeria Limited, whose interests and rights are held through Distell International Holdings Limited, and 100 percent of the import business of Heineken Beverages (Holdings) Limited in Nigeria." The genesis of this move traces back to May, when the Board of Nigerian Breweries Plc received an offer from Heineken Beverages (Holdings) Limited to acquire a majority stake in Distell Wines. Distell Nigeria, a key player in local wine and cider production as well as the importation of wines, spirits, and flavoured alcoholic beverages, stands at the forefront of this strategic move. Pending regulatory approval, Nigerian Breweries envisions these acquisitions as pivotal in realising its strategic objectives, aiming to diversify its product portfolio beyond beer to include wines, spirits, and flavoured alcoholic beverages. The move is anticipated to unlock growth opportunities and secure long-term profitability for the company. Heineken Beverages currently holds a 100 percent stake in Distell International Limited, the parent company of Distell Nigeria, founded in 2018 with its headquarters in Lagos. The upcoming shareholder meeting holds significance as it paves the way for Nigerian breweries to chart a dynamic course in the ever-evolving beverage landscape.