South African Breweries PLC
15 May 2002
15 May 2002
DIAGEO PLC AND SOUTH AFRICAN BREWERIES PLC SUBSIDIARIES
SIGN AGREEMENTS IN EAST AFRICA
Diageo plc and South African Breweries plc today announced that their respective
subsidiaries, East African Breweries Limited (EABL) and South African Breweries
International (Africa) BV (SABI), have entered into agreements relating to the
operation of their businesses in Kenya and Tanzania.
In Kenya, SABI has closed its brewing operations at Thika. SABI will retain its
presence in Kenya by taking a 20% shareholding in Kenya Breweries Limited (KBL),
a subsidiary of EABL. As part of the transaction, EABL will acquire Castle
Brewing Kenya Limited (CBK), a subsidiary of SABI. Brands previously produced
and sold by CBK will be produced and sold under licence by EABL.
In Tanzania, EABL has closed its Kibo Brewing operation. EABL will retain its
presence in Tanzania by taking a 20% shareholding in SABI's Tanzania Breweries
Limited (TBL). At the same time, TBL will acquire Kibo Breweries Limited
(Kibo), a subsidiary of EABL. Brands previously produced and sold by Kibo will
be produced and sold under licence by TBL.
The transaction is subject to certain conditions precedent, including the
approval of the local regulatory authorities. No cash payment or compensation
will be made between SABI and EABL. Each company is responsible for the closure
arrangements of their own breweries.
The impact on SABI of the transaction is earnings and value enhancing.
Net assets acquired by EABL in this transaction had a value of approximately US
$21.2m and the net assets acquired by SABI had a value of approximately US
For further information please contact
Anna Miller Salzman, Head of Investor Relations, SAB plc
Tel: + 44 (0) 207 659 0106
Mob: + 44 (0) 7973 837 070
Ciaran Baker, Head of Corporate Communications, SAB plc
Tel: + 44 (0) 207 659 0120
Mob: + 44 (0) 7979 954 493
Mitch Ramsay, Communications Manager SABI Africa & Asia
Tel: + 27 (0) 11 407 1822
Mob: +27 (0) 83 631 0308
Notes to Editors
1. In Kenya, where KBL has a 90 percent market share, CBK has a 10 percent
market share. Following today's agreement EABL will produce, market and
sell the following SAB brands: Castle Lager, Redd's Premium Cold, Trophy
Lager and Ranger Special Lager.
2. In Tanzania, TBL has about an 85 percent market share and EABL a 13 percent
market share. After today's agreement TBL will produce, market and sell the
following EABL and Guinness UDV brands under licence: Tusker, Pilsner and
Pilsner Ice, Guinness FES, Guinness Malta and Kibo Gold.
This information is provided by RNS
The company news service from the London Stock Exchange