The first round of British multinational Diageo’s offer to purchase an additional 14.97 percent ownership in East African Breweries Plc (EABL) was oversubscribed, indicating strong investor interest in the premium the business paid for the shares.
The business would spend Sh22.7 billion to acquire 118.4 million shares of the brewer at a price of Sh192 per share. Determining that the pro-rata scale-down procedure outlined in the contract offer agreement would be used.
A “guaranteed allocation pool” of 47.5 million shares was put aside by the firm under the prorated allocation plan in order to satisfy all early bidders up to a maximum of 10,000 ordinary shares.
The Sh192 offer price entails a 39 percent premium.