Vote of Confidence in NBL

November 15th, 2021.
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Monday, 15 November 2021
Namibia Breweries Limited (NBL) issued an announcement on the Namibian Stock Exchange (NSX), on 15 November 2021, advising that its board of directors had entered into a conditional Implementation Agreement, with Sunside Acquisitions Proprietary Limited, a newly incorporated unlisted subsidiary of Heineken International B.V. (Heineken International, a wholly owned subsidiary of Heineken N.V. (Heineken)) in South Africa (Newco), Ohlthaver & List Beverage Company Proprietary Limited (O&L), Distell Group Holdings Limited (Distell), NBL Investment Holdings Limited (NBLIH) and Heineken International, regarding, inter alia, the proposed disposal of NBL’s 25% shareholding in, and all its claims against, Heineken South Africa (RF) Proprietary Limited, to Newco, and the distribution of the disposal proceeds to NBL Shareholders through a special dividend.

As part of a series of interrelated transactions detailed in the announcement, which are conditional upon certain conditions being fulfilled, Newco will acquire, subject to the fulfillment of conditions precedent and competition authority approvals both in Namibia and other jurisdictions, the entire share capital in NBLIH from O&L and Heineken International. Should all the conditions be fulfilled, and the transaction is concluded, Heineken International would become the controlling shareholder of NBL.

In addition, NBL has received an offer from Heineken, subject to the successful completion of certain conditions, to acquire Distell Namibia. The NBL board of directors is considering the merits of this offer and has not yet made a determination whether or not to accept it.

NBL Managing Director, Marco Wenk, says that these developments are testimony to the trust that NBL has established, the equity of its brands, and the confidence in NBL and its future as a global beer business. Wenk adds that should Heineken International become the controlling shareholder of NBL, this would result in a new phase of growth for NBL’s brands, supported by a significantly enhanced platform in South Africa and a stronger capability in Africa. Should the Distell Namibia acquisition proceed, NBL will be the exclusive partner of Newco in Namibia across all alcoholic beverage products controlled by Newco.

Responding to questions posed to NBL Chairman, Sven Thieme, about the prospects of Namibia’s 100 year old brewery being majority-owned by international beer brewer Heineken, Thieme says: “NBL is not leaving Namibia; in fact, it will remain a Namibian company listed on the NSX. NBL shareholders and stakeholders will enjoy all the benefits of being part of a global beer business with world class systems, synergies and route to market. Just imagine the opportunities for brands born and bred in Namibia, when they have access to global platforms that come with being part of a trusted international company like Heineken.”

Thieme also said that it had become time to set NBL free to be everything it can be. Thieme: “What we have achieved with NBL is truly amazing, but the time has come to unleash its full potential, by giving NBL access to the world. Having worked with Heineken for many years and knowing that they too are passionate about beer and share similar family values and culture to that of O&L, we are confident that Heineken is best placed to do just that.”

Heinkeken’s President, Africa, Middle East and Eastern Europe, Roland Pirmez said:
With NBL we see exciting opportunities to expand premium beer and cider in Namibia and grow the iconic Windhoek brand beyond its home market. The businesses share common values derived from their family heritage, long-term perspectives, entrepreneurial spirit, and respect for people and planet. Together we commit to being a strong partner for growth in Africa and to make a positive impact in the communities in which we operate.”

ENDS

About NBL:
Established on 29 October 1920, Namibia Breweries Limited (NBL) is one of the leading beverage manufacturing companies in Namibia and in Southern Africa. Based in Windhoek, and employing more than 800 people, NBL leads the domestic beer market in Namibia and has a significant share of the premium beer category in Southern Africa. Its portfolio includes a range of soft beverages, as well as low and non-alcoholic products. NBL beer brands are brewed in strict accordance with the Reinheitsgebot “Purity Law” – which only uses three ingredients: malted barley, hops and water. It’s brands, Windhoek Lager, Tafel Lager, Windhoek Draught and Windhoek Light, have earned international recognition for quality and purity. NBL’s products are exported to 17 countries outside of Namibia and South Africa. NBL Investment Holdings Limited (NBLIHL) is the controlling structure above Namibia Breweries Limited.

About HEINEKEN
HEINEKEN is the world’s most international brewer. It is the leading developer and marketer of premium beer and cider brands. Led by the Heineken® brand, the Group has a portfolio of more than 300 international, regional, local and specialty beers and ciders. We are committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through “Brewing a Better World”, sustainability is embedded in the business. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. We employ over 80,000 employees and operate breweries, malteries, cider plants and other production facilities in more than 70 countries.

About DISTELL
Distell is Africa’s leading producer of spirits, wines, ciders and ready-to-drinks (RTDs) as well as the world’s second-biggest producer of ciders. Some of the company’s top brands include Amarula, Hunter’s, Savanna, 4th Street, Klipdrift, Nederburg, Richelieu, Viceroy, and J.C. Le Roux. Distell employs 4 500 people worldwide.

Issued by:
Patricia Hoeksema
Weathermen & Co for NBL
P.O Box 16, 7th Floor, Alexander Forbes House
C/o Independence Avenue & Fidel Castro Street Windhoek, Namibia
Tel: +264 (0)81 124 0199 / +264 (0)61 207 5111 / Fax: +264 (0)61 255 599
Mail: patricia.hoeksema@ol.na