DISTELL GROUP LIMITED - Voluntary announcement regarding the acquisition by Distell of 26% of Kenya Wine Agencies East Africa Limited

Voluntary announcement regarding the acquisition by Distell of 26% of Kenya Wine Agencies East Africa Limited

DISTELL GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1988/005808/06)
ISIN: ZAE000028668
Share Code: DST
("Distell" or "the Company")

VOLUNTARY ANNOUNCEMENT REGARDING THE ACQUISITION BY DISTELL OF 26%
OF KENYA WINE AGENCIES EAST AFRICA LIMITED ("KHEAL")

1. Introduction
Shareholders are hereby advised that Distell Limited, a major
subsidiary of Distell Group Limited, has entered into an agreement
in terms of which it will acquire 26% of the issued share capital
of KHEAL for a total cash consideration of KES 860 million
(approximately R105 million) ("the Transaction").

2. Nature of business
KHEAL is Kenya’s foremost spirits manufacturer, bottler and
distributor with strong and established local mainstream brands.
KHEAL operates five distribution centres in the country, one in
Uganda, as well as a wholly-owned subsidiary in Rwanda. KHEAL also
sells products through duty-free outlets in Kenya and Rwanda.

3. Distell’s rationale for the Transaction
Distell’s relationship with KHEAL goes back more than 15 years.
KHEAL has been bottling a selection of our drive brands and
distributing these, along with some of our key South African
packaged brands in Kenya and other parts of East Africa.

Distell’s wealth of experience in the ciders, spirits and wine
segments will bring new capabilities to KHEAL and increase its
competitive position that will in turn unlock and create
significant value.

4. Categorisation of the Transaction
The purchase consideration is less than 5% of Distell’s market
capitalisation and as such, the Transaction does not trigger the
categorisation requirements in terms of the Listing Requirements
of the JSE Limited, thus this announcement is voluntary.

Stellenbosch
21 July 2014

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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