London-based Diageo Plc, a multinational alcoholic beverages company listed on the London and New York Stock Exchanges, has moved to consolidate its shareholding in East African Breweries Limited (EABL).

In a notice issued under regulations by the Capital Markets Authority(CMA), Diageo Plc has announced the acquisition of EABL shares held by Diageo Holdings Netherlands B.V and Guinness Overseas Limited.

Diageo plc thus becomes the majority shareholder in EABL at 50.3%, through its subsidiary, Diageo Kenya Limited.

Previously, Diageo Kenya Limited held 42.82% shareholding of EABL with Guinness Overseas Limited holding 2.6% and Diageo Holdings Netherlands, a 4.6% stake in the Kenyan brewer.

The UK subsidiary, Diageo Kenya Limited, has confirmed that it will not be making a take-over bid for the remaining shares of EABL.

The multinational also said the proposed transaction will not have any impact on management or Board of EABL as constituted, its business, operations or finance.

CMA has granted its approval for this anticipated inter-group shares transfer of EABL shares, to be concluded within two weeks from the 23rd July, 2020 date of this announcement.