Centum Investment exits Kenya Wine Agencies Limited (KWAL) by selling its entire 26.43% stake
Investment firm Centum has sold its entire 26.43 percent stake in Kenya Wine Agencies Limited (KWAL) to South Africa’s Distell Group Limited. The valuation of the deal is not yet public. Consequently, Distell Group now becomes the majority shareholder with a stake of 52.43 percent in KWAL. This deal comes after the firm having previously acquired a 26 percent stake from Industrial and Commercial Development Corporation (ICDC) in 2014 for Ksh.860 million.
“KWAL and Distell management will continue to work closely together, as we have done since 2014, to identify and unlock further opportunities for collaboration and synergies. This will provide the platform for sustained growth and further cement KWAL’s position as Kenya’s national champion.”
-Carlos Gomes, Managing Director, KWAL
Distell Group Limited has commented that ICDC’s shareholding in KWAL is not impacted by this transaction and they remain a significant shareholder in KWAL. ICDC owns 42.65 percent stake in KWAL with distributors having 0.92 percent. There is an ongoing sale of 3.84 million shares or 4 percent stake at a price of Sh34.46 a piece to staff under an employee stock ownership plan.
“With a population of over 47 million people, Kenya is expected to be one of the fastest growing economies in Africa, driven by rapid urbanization and strong income per capita growth across major cities over the next decade. Spirits has been the fastest growing segment of Kenya’s alcoholic beverage industry and growth is anticipated to remain robust going forward.”
-Donovan Hegland, Managing Director, Distell Africa
KWAL owns a portfolio of leading local brands such as Kibao, Kingfisher and Caprice. Just for the record, Distell is Africa’s largest producer of spirits, wines, ciders and ready-to-drinks (RTDs). Through this deal, Distell seeks to increase its exposure to Kenya’s highly attractive economy and alcoholic beverage industry.
“Our strategy is to expand geographically through acquisitions of and/or partnerships with regional scale players who have leading brands, rich heritage, and strong platforms in their core markets. We believe the strength of KWAL’s platform and key brands align with Distell’s strategic intent.”
-Donovan Hegland, Managing Director, Distell Africa
Distell’s relationship with Nairobi-based KWAL dates back to 1998 when KWAL started distributing a selection of Distell’s brands, including Viceroy, Amarula, Drostdy-Hof and Cellar Cask.
