The UK-based Diageo acquired additional shares at the East African Breweries Limited (EABL) valued at Ksh.25.2 billion.
The move saw the Nairobi Securities Exchange (NSE) listed firm shares rocket to trade at Ksh.170 from Ksh.138 per share on Friday.
Diageo is the parent company of EABL and the decision to buy extra shares have had the company’s market capitalization at the NSE stand at Ksh.134.3 billion.
“It is a demonstration of Diageo’s long-term confidence in EABL and in the East African alcoholic and non-alcoholic beverage market and economy, generally,” Diageo said in public announcement on Friday.
The firm’s offer for additional EABL shares is set to open at 09:00 AM on January 30 2023.
It will open to holders of ordinary shares on the register of EABL at 5:00 PM on January 16, 2022.
Diageo, through its Kenyan subsidiary – Diageo Kenya Limited is also set to acquire an additional 118.4 million shares in EABL.
This will raise its stake in EABL to 65 per cent from the current 50.03 per cent.
Diageo has offered a premium price of Ksh.192 to purchase the shares setting of interest among investors in the firm to lock in the prime return.
The Ksh.192 per share premium is 39.7 per cent higher than the daily average trading price at which EABL shares traded on October 12.