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Diageo to raise its stake in Kenyan brewer EABL

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An employee of the East African Breweries Ltd checks beer quality before labelling at the company’s plant in Ruaraka, Nairobi. PHOTO | FILE | NATION MEDIA GROUP

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Diageo Plc, the largest spirits producer in the world, announced on Friday that it has proposed to purchase more shares in Kenya's East African Breweries in order to increase its interest there by a third to 65%.

The multinational alcoholic beverage company Diageo announced in a statement that it is making an offer to purchase 118.39 million shares at 192 shillings ($1.59) each, representing a 40% premium over the market price.

According to Diageo, the offer expires on March 10 of the next year. It also stated that it would not attempt to acquire full ownership of the business should it reach its goal of doing so.

Diageo claimed that one of the things that convinced them to ask for an increase in shareholding was the tenacity displayed by EABL throughout the COVID-19 pandemic.

The Nairobi Stock Exchange has been experiencing a bear run as have other frontier and emerging markets as a result of interest rate increases in developed nations.