Central Bank says Kenyans in the diaspora sent Sh110.3 billion in 2013. FILE
London-listed SABMiller has said it earned a
Sh8.7 billion profit from the sale of its 20 per cent stake in Kenya
Breweries Limited to East African Breweries Limited (EABL).
SABMiller made the profit after receiving Sh20.6 billion from EABL in November 2011 as the two brewers terminated a distributorship and co-ownership pact in Kenya and Tanzania.
In the 2002, SABMiller acquired a 20 per cent
stake in Kenya Breweries Limited and offered EABL a similar stake in its
Tanzania subsidiary to avoid a vicarious market share fights in the two
countries.
But the Kenyan brewer in 2009 terminated the deal
and opted to acquire rival Serengeti on claims that the pact with the
SABMiller was pulling back its operations. This saw EABL take back the
20 per cent stake in its Kenyan unit from London-listed brewer as it
sold the Tanzanian stake for Sh3.6 billion.
“In 2012, a profit of $103 million (Sh8.7 billion)
was realised on the disposal of the group’s investment in its
associate, Kenya Breweries Ltd, in Africa,” SABMiller disclosed in the
report.
The multinational said that it also earned a
dividend of $9 million (Sh783 million) from Kenya Breweries in 2012. But
the deal has not been favourable to EABL whose profit and dividend
payout has dropped on high finance costs linked to a Sh19.9 billion loan
it took from its parent Diageo to pay off SABMiller.
The NSE-listed firm also spent $60.4 million
(Sh5.1 billion) in acquiring a 51 per cent stake in Serengeti Breweries
to gain a direct presence in Tanzania and compete with SABMiller’s
Tanzania Breweries.
This means it spent a total of Sh25.7 billion in
the share transactions that earned it Sh3.6 billion, setting back the
regional brewer by Sh21.5 billion given the valuation of Kenya Breweries
rose faster than that of Tanzania Breweries.
EABL’s net profit dropped 37.9 per cent to Sh6.9 billion in the year ended June compared to Sh11.1 billion the year before.
No comments:
Post a Comment