Diageo invests $225m in Kenyan brewer

6th Jun 2011 07:07

Spirits brands owner Diageo is set to acquire SABMiller's stake in a Kenyan brewery firm for around $225m.Through its subsidiary East African Breweries Limitied (EABL), Diageo - famous for its brands Smirnoff and Guinness - will buy a 20% stake from SABMiller's African subsidiary in Kenya Breweries Limited (KBL) for a cash consideration of 19.53bn Kenyan shillings.KBL has a total brewing capacity of 2.5m hectolitres per annum.The transaction is subject to EABL disposing of its 20% shareholding in Tanzania Breweries Limited by way of a public offer through the Dar-es-Salaam Stock Exchange, Diageo said.Also part of the agreement, KBL has agreed to cease its brewing and distribution agreement with SABMiller and will no longer distribute SABMiller's brands - such as its Grolsch- and Peroni-branded lagers - in Kenya.---BC