East African Breweries Limited (EABL) has announced a special payout of Sh4.50 ($0.05) per share after making additional income from the sale of its glass-making business Central Glass Industries (CGI) to South Africa’s Consol Glass last September for Sh4.5 billion ($45 million).
This will see the multinational alcoholic beverages company Diageo pocket about Sh1.78 billion ($18 million). The company owns 395.6 million of the firm’s issued shares, giving it a 50.03 percent stake. EABL’s board had also in January recommended an interim dividend of two shillings per share.
“To reward the shareholders, the Board considers it appropriate to distribute this special dividend in recognition of additional income EABL received from the sale of CGI,” The regional brewer said in a statement.
“The special dividend is payable in addition to the interim dividend that was declared for the half year to December and is in addition to any final dividend that the board may declare following the announcement of full-year results.”
EABL is expected to use about Sh900 million of the amount raised to partly repay a $200 million loan that it borrowed from Diageo in 2011.
The brewer’s shares ended the day at Sh297 ($3) on Friday, rising by 0.34 percent from the previous day, on the Nairobi Securities Exchange.