SABMiller expands Zambian ops
9 September 2009
SABMiller has bought the Maheu division of Zambia's Trade Kings, the JSE and London listed brewer said on Tuesday.
The cash transaction was valued at US$19.25-million, SABMiller said in a statement.
The Zambian Maheu drink is a non-alcoholic maize beverage available in a variety of flavours.
SABMiller said the completion of acquisition was subject to certain customary conditions precedent, including approval from the Zambia Competition Commission which was received last month.
"It is anticipated that completion of the acquisition will take place in the next two months," the company said.
Within Zambia, SABMiller Africa already owns Zambian Breweries Group, the largest clear beer and soft drinks business in the country, and 70% of National Breweries Plc, which is listed on the Lusaka Stock Exchange.
SABMiller also commands a substantial amount of the opaque beer market.
The company said the acquisuition would further strengthen SABMiller Africa's objective of expanding the price range of both its alcoholic and non-alcoholic brand portfolios across the continent.
"SABMiller Africa intends to grow the Maheu business throughout Zambia and across a variety of African markets, resulting in both increased sales volumes and further employment opportunities."
Following the completion of the transaction, SABMiller Africa would continue to employ the existing Trade Kings staff engaged in the production of Maheu, it added.
Sapa
