Diageo Plc has completed the sale of its entire 54.4 percent stake in Seychelles Breweries Limited to Phoenix Beverages Limited for approximately $80 million as part of its ongoing strategy to streamline operations across Africa.
The transaction marks Diageo’s third major divestment on the continent within twelve months. In January the company sold its 80.4 percent stake in Guinness Ghana Breweries Limited to Castel Group.
Last year it also exited Guinness Nigeria by selling its 58.02 percent shareholding to Singapore-based Tolaram Group. Earlier divestments included Guinness Cameroon S.A. and Meta Abo Brewery in Ethiopia.
The latest deal will allow Phoenix Beverages Mauritius’ largest brewer and bottler of soft drinks to expand its footprint in the Indian Ocean islands region.
PhoenixBev which already produces Guinness and Smirnoff Ice under license in Mauritius will integrate Seychelles Breweries into its regional portfolio.
PhoenixBev expects the acquisition to contribute approximately 1.7 billion Mauritian rupees in annual revenue and 231.8 million rupees in profit after tax.
The transaction is expected to be finalized by June. Seychelles Breweries will remain listed on the Seychelles Stock Exchange following the completion of the deal.
The company has faced growing competition and currency volatility across key markets on the continent prompting a gradual shift towards partnerships and licensing agreements instead of direct ownership.
