Nabarro advises Heineken on €136M African brewing restructuring

This article was produced by Nabarro LLP, which joined CMS on 1 May 2017.

Nabarro has advised brewing giant Heineken on the restructuring of its joint venture operations with Diageo and The Ohlthaver & List Group of Companies (O&L), the majority shareholder of Namibia Breweries Limited (NBL) in South Africa and Namibia.

As a result of the agreements and subject to regulatory approvals, Heineken will become the 75 per cent shareholder and NBL will become the 25 per cent shareholder in the two South African joint venture companies, DHN and Sedibeng. These companies respectively hold the licences for the beer portfolio of the shareholders and also own the Sedibeng brewery in Gauteng, Johannesburg. Heineken and O&L will indirectly own approximately 30% each of NBL, which is listed on the Namibia stock exchange.

Heineken will pay a total net consideration of €136 million for the equity and debt positions it acquires in Sedibeng, DHN and NBL.

Patrick Speller, corporate partner at Nabarro who led the team which included Gordon Anton and Jamie Evans, commented:

“We have worked with Heineken on a variety of African brewing interests over the years and helped the company secure its position in a significant and developing market. This latest transaction builds on the strength of our relationship to deliver a refreshed JV structured to meet the business objectives of our client.”

Nabarro has also advised Heineken on the IPO of brewer, Bralirwa, on the Rwanda stock exchange, the first of its kind, and the $160m acquisition of the Bedele and Harar breweries as part of an Ethiopian government privatisation.