DISTELL GROUP LIMITED - Voluntary announcement: increase in shareholding in KWA Holdings E.A. Limited (KWAL) to 52.43%.

Voluntary announcement: increase in shareholding in KWA Holdings E.A. Limited (“KWAL”) to 52.43%.

Distell Group Limited
Incorporated in the Republic of South Africa
(Registration number 1988/005808/06)
Share code: DST
ISIN: ZAE000028668
("Distell" or "the Company")


VOLUNTARY ANNOUNCEMENT: INCREASE IN SHAREHOLDING IN KWA HOLDINGS E.A. LIMITED
(“KWAL”) TO 52.43%.


1. Introduction

   Shareholders are hereby advised that Distell International Holdings Limited (“DIH”), a subsidiary of Distell,
   has completed the acquisition of a 26.43% shareholding in KWAL from Centum Investment Company
   Limited (the “Transaction”). Following the Transaction, Distell now has a majority shareholding of 52.43%
   in KWAL.

2. About KWAL

   KWAL is Kenya’s foremost spirits, wine and ready-to-drink manufacturer and distributor with volumes in
   excess of 8 million litres in 2016 and a portfolio of leading local brands such as Kibao, Kingfisher and Caprice
   which have shown strong growth in recent years.

   Distell’s relationship with KWAL dates back to 1998 when KWAL started distributing a selection of the
   Company’s brands. In December 2014, Distell acquired a 26% shareholding in KWAL through a Kenya
   government privatisation process.

3. Strategic rationale

   Distell is one of Africa’s leading producers and marketers of spirits, wines and ciders and other ready-to-
   drink beverages. The Transaction is expected to strengthen Distell’s position in Kenya, a large and highly
   attractive alcoholic beverage market.

   Kenya is widely expected to be one of the fastest growing economies in Africa over the next decade, driven
   by rapid urbanisation and strong income per capita growth. Spirits has been the fastest growing segment of
   Kenya’s alcoholic beverage industry and growth is expected to remain robust going forward. KWAL, as
   Kenya’s leading local spirits, wine and ready-to-drink player, is poised to benefit from the economy and
   alcoholic beverage sector’s strong growth. Distell’s majority shareholding will foster closer co-operation
   between KWAL and Distell which will support KWAL’s continued growth and deliver a range of synergies.

4. Categorisation of the Transaction

   The Transaction consideration represents less than 5% of Distell’s market capitalisation and as such, does
   not trigger the categorisation requirements in terms of the Listings Requirements of the JSE Limited.

Stellenbosch
4 April 2017
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 04/04/2017 01:24:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.