Diageo invests in Kenya

06/06/2011 - Kenya property & investment news Posted by Bon Brunskill
Diageo invests in Kenya

A major spirits brand has invested in Kenya, acquiring a substantial stake in a Kenyan brewer.Diageo's subsidiary East African Breweries Ltd (EABL) is set to acquire a 20 per cent stake in its Kenyan unit from South Africa's SABMiller.The group will pay around 19.53 billion shillings, the US dollar equivalent of $225 million.In a statement, EABL said: "KBL has also agreed to terminate a brewing and distribution agreement with SABMiller International BV and will cease to distribute SABMiller's brands in Kenya after a short transitional period."The deal is also subject to EABL disposing of its 20 per cent shareholding in Tanzania Breweries Limited, through a public offer on the Dar-es-Salaam Stock Exchange.Among the brands owned by Diageo are Smirnoff and Guineess. Meanwhile, SABMiller owns drinks names such as Grolsch and Peroni lagers.Shareholders and investors have been advised to exercise caution when dealing with EABL's ordinary shares until further announcements on the trade have been revealed.