After its tender offer for an additional 14.97 percent stake in the brewer concludes later this month, British juggernaut Diageo has left open the possibility of purchasing additional EABL shares on the open market at the Nairobi Stock Exchange (NSE).
The London-based company ran the first phase of the tender from February 6 to February 17, and the second phase began on Monday and will last until March 17. Diageo Kenya, the company’s wholly-owned subsidiary, is carrying out the acquisition of the additional interest.
Diageo stated in its tender offer document that it would retain the right to launch additional tenders or buy stock on the open market, which raised the possibility that the company might eventually increase its stake in EABL. The document was made public before the sale began on February 6.
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In the current tender offer, it is looking to purchase 118.4 million shares in the brewer, for a total price of Sh192 per share, for a sum of Sh22.7 billion.
Through Diageo Kenya, the London-based company currently owns 50.03 percent of EABL, or 395.6 million shares. This stake will increase to 65 percent if the tender offer is fully subscribed.
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