Shareholders of Namibian Breweries Limited (NBL) are expected to be paid a total of N$5.4 billion on Friday as part of a special dividend payment agreed upon with Heineken International BV (Heineken BV), who have acquired the company.
The amount is based on 206.529 million shares in issue and a special dividend of N$26.35 per share.
This comes as part of the proposed disposal agreement, which will see NBL receive a cash amount of N$5.5 billion, with N$5.4 billion being allocated to Heineken SA shares currently owned by NBL and N$73.6 million being a loan claim that NBL has against Heineken SA.
Friday will also see the transfer of Namibian Breweries Investment Holdings Limited (NBLIH)’s shareholding to Newco, in which Heineken will have a minimum 65% shareholding, with the remainder held by Distell shareholders who elect to reinvest.
The change in control will result in changes to the brewer’s 13-member board, which is currently chaired by Sven Thieme, who was appointed in March 2002.
These changes are expected to reflect the ownership change in the business, but the current management will remain unchanged, although some recruitment has started for some positions.
The acquisition of Distell Namibia will only become effective as of Monday next week, on 17 April 2023. Heineken NV, which already owns a 49.99% interest in NBLIH, offered to buy Ohlthaver & List Group of Companies (O&L)’s 50.01% stake in the national brewer.
According to NBL, this acquisition has the potential to attract investment worth N$10 billion for the country.
As part of the local conditions set by the Namibia Competition Commission (NaCC), a five-year moratorium on retrenchments has been imposed amid concerns over the possibility of duplication of roles due to similarity in operations between the entities.
The Commission also determined that products consumed in Namibia must be manufactured or at least bottled in Namibia, which will create additional employment and contribute to further industrialisation and economic growth.
The NaCC has also ordered the disposal of Heineken’s Strongbow brand to remove an overlap in the flavored alcoholic beverages (FAB) category in respect of Heineken and Distell, which is expected post-merger.
Heineken has a portfolio of more than 300 international, regional, local, and specialty beers and ciders, while Namibia Breweries Limited is one of the leading beverage manufacturing companies in Namibia, with a significant share of the premium beer category in Southern Africa and more than 700 employees. The acquisition of control over Distell Group Holdings Limited and Namibia Breweries is expected to enhance Heineken’s position as a regional leader in the beverage industry.
The acquisition will create opportunities for suppliers and retailers, and Heineken has committed to investing in local communities and supporting local suppliers. The creation of Newco will enable Heineken to expand its operations in Southern Africa and become a regional leader in the industry.
Heineken is the world’s second-largest brewer after Anheuser-Busch InBev.
