Diageo, a London headquartered multinational alcoholic beverage company plc has formulated an offer worth KES 22.73 Billion to obtain additional shares in its associate East African Breweries Plc (EABL).

However, the offer represents 14.97% of the given share capital of EABL, which is listed on the Nairobi Stock Exchange.

Consequently, in a tender offer seen by the Kenyan Wall Street, Diageo said it has served on East African Breweries PLC (EABL) notice of the intention to acquire up the additional 118,394,897 ordinary shares at an average price of Kenya Shillings (KES) 192.00.

The offer price is 39 per cent above EABL’s closing price of KES 138 on the Nairobi Securities Exchange on Thursday 13th October 2022. Over the last 52 weeks, EABL’s share price has traded in the range of KES 110 to KES 172.

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Diageo is currently the majority governing shareholder of East African Breweries (EABL) and currently holds 395.61 Million ordinary shares of EABL which represents 50.03% of the issued share capital of EABL. Should the offer go through, Diageo will will hold 514.003 Million ordinary shares in EABL which would represent sixty-five per cent (65%) of the issued share capital of EABL.