The Ohlthaver & List (“O&L”) Group of Companies, the majority shareholder of Namibia Breweries Limited (“NBL”), together with Diageo, and Heineken International B.V. (“Heineken”) herewith announce that they have agreed to restructure their South African and Namibian joint ventures.
With regard to the Namibian operations, the result will be that when the transaction completes, HEINEKEN will have acquired the 15% indirect Diageo-owned stake in NBL, increasing its indirect ownership to 29.9%. O&L will retain its 30.1% indirect stake with the balance being held by local minority shareholders. O&L will continue to control NBL going forward.
With regard to operations in South Africa, Diageo will also sell its 42.5% stake in DHN Drinks (Proprietary) Limited which will result in Heineken increasing its stake from 42.5% to 75% and NBL increasing its stake form 15% to 25%.
NBL will acquire the 25% stake that Diageo owns in the Sedibeng brewery in South Africa. Heineken will retain its existing 75% stake in the brewery. This new joint venture between NBL and Heineken will be exclusively focused on a beer portfolio and provides the parties with increased commercial control of key brands in South Africa, including Heineken, Amstel and Windhoek.
It must be noted that above implementation is subject to regulatory approvals, including approvals from competition authorities.
South Africa is one of the biggest beer markets in the region, with a growing middle-class population and strong GDP growth. The beer market is expected to grow by approximately 1.5% per annum from its current size of 30 million hectolitres to an estimated potential of 35 million hectolitres by 2024.
Sven Thieme, Executive Chairman of O&L, says:
“We are proud to have worked together with two world-class organisation Diageo and Heineken from whom we have benefitted in terms expertise and know-how. We have significantly grown our beer portfolio in South Africa and Namibia and are excited to enter into a new partnership with Heineken to take our beer portfolio growth aspirations to the next level. The region has strong demographics and compelling prospects for future growth. We look forward to this next stage of our journey.”