Diageo has sold the majority of its shares in Seychelles Breweries to IBL Group subsidiary Phoenix Beverages for US$80 million.
Diageo first revealed plans to sell its 54.4% shareholding in Seychelles Breweries to Mauritius-based Phoenix Beverages back in April in a bid to focus on its more high-margin brands.
Under the terms of the deal, although Diageo has sold its majority stake, it still retains ownership of its key brands produced by Seychelles Breweries, such as its beer brand Guinness as well as its Smirnoff RTDs.
These brands will not be affected by the deal and will continue to be produced and distributed in the Seychelles under a new long-term licensing and royalty agreement with Seychelles Breweries which is set to ensure the companies ongoing collaboration.
Speaking about the deal earlier this year, Arnaud Lagesse, chairman of Phoenix Beverages, admitted that he sees “mergers and acquisitions as more than just business moves” but more as “key milestones in our growth journey”.
Describing the thinking behind the deal, Lagesse explained that Phoenix Beverages’ investment in Seychelles Breweries also aligns with its “‘IBL Beyond Borders’ group strategy” and is not just about expanding its trajectory, but “about stepping into a new chapter for the next generation”.
Lagesse added: “This move allows us to fast-track our ambitions in a way that organic growth alone could not match. Strengthening our presence in the Seychelles gives us the momentum to create lasting value and deepen our leadership across the Indian Ocean beverage landscape.”
Describing why Phoenix Beverages was the best recipient for the majority shareholding stake, Dayalan Nayager, president Diageo Africa and chief commercial officer noted how Phoenix Beverages was “a long-term partner in the Indian Ocean region” and pointed out how this deal would help to “further unlock value for Seychelles Breweries and deliver long-term sustainable growth”.
Despite completion of the deal, Seychelles Breweries will remain listed on the Seychelles Stock Exchange.
Source: thedrinksbusiness.com
