The Competition Authority of Kenya has approved the proposed acquisition of minority control of African Originals Limited by Phoenix Beverages Limited unconditionally.
Firm linked to Naivas investors acquires stake in African Originals [Details]
The business plans to utilise its new relationship with Naivas
A Kenyan Originals branded tuktuk
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Phoenix Beverages Limited (PBL) is a limited liability company incorporated in Mauritius. The company produces and sell international brands and is the authorised bottler of the products of The Coca-Cola Company in Mauritius.
It is publicly listed on the Stock Exchange of Mauritius Ltd. PBL's ultimate holding company is IBL which is a publicly listed company incorporated in Mauritius.
PBL is involved in the manufacture, processing, distribution, and sale of alcoholic and non-alcoholic beverages, but has no operations in Kenya.
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However, through IBL, the acquiring group directly and indirectly control several undertakings with operations in Kenya, including its affiliate Naivas Limited.
People enjoying Kenya Originals beverages
People enjoying Kenya Originals beverages
Pulse Live Kenya
Following the transaction, the business intends to enter into a vertical relationship with Naivas Limited, which is engaged in retail distribution and sale of alcoholic and non-alcoholic beverages, among other commodities.
African Originals Limited is a private company incorporated in England and Wales.
It controls an entity in Kenya, Savannah Brands Company Limited, that manufactures, processes, distributes and sells alcoholic and non-alcoholic beverages including Kenyan Originals (KO) Alcoholic Fruit Cider, Kenyan Originals Gin, and Kenyan Originals Iced Tea and Tonic.
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“The proposed transaction involves the acquisition of a minority controlling stake (28.15%) of African Originals Limited's ordinary shares by PBL, alongside minority controlling right relating to, among others, budgets, annual business plans, and appointment of senior executives. This will result in de facto control,” the statement by the Competition Authority of Kenya said.
The transaction, therefore, qualified as a merger within the meaning of Sections 2 and 41 of the Competition Act No. 12 of 2010.
According to CAK, the merging parties have a combined turnover or assets, of over Sh1 billion.
What does Savannah Brands produce
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Cider is an alcoholic drink made from fermented apple juice. Ciders are distinguished from wine by their lower alcohol content and higher natural sugars. Further, the production lead time for ciders typically is shorter.
Some of the manufacturers and/or suppliers in the alcoholic cider market in Kenya include East African Breweries PLC (EABL) which produces Tusker Cider & Sikera, Kenya Wine Agencies Ltd (KWAL) which produces Savannah and Hunters, and Kenyan Originals (KO) Ciders.
Below is the market share of players in this industry
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