Companies

EABL to sell bottle making subsidiary to S Africa’s Consol Glass

plant

EABL plans to sell one its subsidiaries, Central Glass Industries Limited (CGI), to South Africa's Consol Glass Proprietary. PHOTO | FILE |

East African Breweries Limited (EABL) said on Wednesday it plans to sell one its subsidiaries, Central Glass Industries Limited (CGI), to South Africa's Consol Glass Proprietary.

EABL, controlled by Britain's Diageo, said its board of directors had approved the sale of its entire stake in the subsidiary subject to regulatory approval by the Competition Authority of Kenya and its shareholders.

EABL did not announce the value of the planned sale of Central Glass Industries, which makes bottles.

According to EABL, CGI was established in 1987 and exports over 50 per cent of it products to countries such as Uganda, Tanzania, Ethiopia, Rwanda, Burundi, Eritrea, Seychelles, Mauritius, Zimbabwe, Zambia and Angola. The plant is situated in Kasarani.

In October, CGI was shut down for three months to allow for refurbishment at an estimate cost of over Sh1 billion. EABL managing director Charles Ireland said the repair work was necessary to seal energy leaks from the furnace which wears out every decade, reducing its efficiency.

Consol Glass Proprietary currently exports its products to 17 markets in Africa, including Kenya.

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