Distilling giant Diageo announced on Friday that, through its wholly-owned indirect subsidiary Diageo Kenya Limited, it has served notice on East African Breweries of its intention to increase its equity stake up to 65%.
The company said it would make the move through a partial tender offer made to other shareholders of EABL.
As of Friday morning, Diageo Kenya held 50.03% of the issued share capital of EABL.
EABL is listed on the main investment market segment of the Nairobi Securities Exchange.
“Subject to receipt of the relevant regulatory approvals, details of the proposed partial tender offer will be set out in a tender offer document, which will be made available to shareholders of EABL,” Diageo said in its statement.
“Diageo Kenya does not intend to make a takeover offer for EABL and will apply to the Capital Markets Authority in Kenya for an exemption from complying with the requirement to make a takeover offer.”
At 1153 BST, shares in Diageo were up 1.67% at 3,675p.
Reporting by Josh White at Sharecast.com.
