RNS Number : 8856H
06 June 2011
6 June 2011
Purchase of Kenya Breweries Limited shares and termination of SABMiller Brewing and Distribution Agreement
Diageo plc announces that its subsidiary East African Breweries Limited (EABL) has agreed to purchase all of SABMiller Africa BV's 20% shareholding in Kenya Breweries Limited (KBL) for cash consideration of the US dollar equivalent of 19,528,062,600 Kenyan Shillings at completion (which if calculated using the mean average rate of exchange quoted by the Central Bank of Kenya on 3 June 2011 would be approximately USD 225 million), subject to EABL disposing of its 20% shareholding in Tanzania Breweries Limited by way of public offer through the Dar-es-Salaam Stock Exchange.
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.
This document contains 'forward-looking statements'. These statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statements that express forecasts, expectations, plans, outlook and projections with respect to future matters, including overall market trends, the availability or cost of financing to Diageo, anticipated cost savings or synergies, the completion of Diageo's strategic transactions and general economic conditions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including factors that are outside Diageo's control. All oral and written forward-looking statements made on or after the date of this document and attributable to Diageo are expressly qualified in their entirety by the 'risk factors' contained in Diageo's annual report on Form 20-F for the year ended 30 June 2010 filed with the US Securities and Exchange Commission (SEC). Any forward-looking statements made by or on behalf of Diageo speak only as of the date they are made. Diageo does not undertake to update forward-looking statements to reflect any changes in Diageo's expectations or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Diageo may make in documents it publishes and/or files with the SEC. All readers, wherever located, should take note of these disclosures. The information in this announcement does not constitute an offer to sell or an invitation to buy shares in Diageo plc or any invitation or inducement to engage in any other investment activities. Past performance cannot be relied upon as a guide to future performance.
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