British multinational Diageo Plc’s proposed purchase of additional shares in EABL values the company at Sh151 billion, signalling an undervaluation of the brewer at the prevailing market price prior to the announcement.
Diageo Plc, which is listed on the London Stock Exchange, said in a notice on Friday that it is seeking to raise its stake in EABL— which is held through a wholly owned subsidiary known as Diageo Kenya — from 50.03 percent to 65 percent, through the purchase of an additional 118.39 million shares in the company at a price of Sh192 a share.
