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SAB Plc And Diageo Plc Sign Agreements In East Africa

Release Date: 15/05/2002 10:31:02      Code(s): SAB
SAB Plc And Diageo Plc Sign Agreements In East Africa                           
South African Breweries PLC                                                     
15 May 2002                                                                     
DIAGEO PLC AND SOUTH AFRICAN BREWERIES PLC SUBSIDIARIES SIGN AGREEMENTS IN      
EAST AFRICA                                                                     
Diageo plc and South African Breweries plc today announced that their           
respective subsidiaries, East African Breweries Limited (EABL) and South        
African Breweries International (Africa) BV (SABI), have entered into           
agreements relating to the operation of their businesses in Kenya and           
Tanzania.                                                                       
In Kenya, SABI has closed its brewing operations at Thika.  SABI will retain    
its presence in Kenya by taking a 20% shareholding in Kenya Breweries           
Limited (KBL), a subsidiary of EABL.  As part of the transaction, EABL will     
acquire Castle Brewing Kenya Limited (CBK), a subsidiary of SABI.  Brands       
previously produced and sold by CBK will be produced and sold under licence     
by EABL.                                                                        
In Tanzania, EABL has closed its Kibo Brewing operation.  EABL will retain      
its presence in Tanzania by taking a 20% shareholding in SABI`s Tanzania        
Breweries Limited (TBL).  At the same time, TBL will acquire Kibo Breweries     
Limited (Kibo), a subsidiary of EABL.  Brands previously produced and sold      
by Kibo will be produced and sold under licence by TBL.                         
The transaction is subject to certain conditions precedent, including the       
approval of the local regulatory authorities.  No cash payment or               
compensation will be made between SABI and EABL.  Each company is               
responsible for the closure arrangements of their own breweries.                
The impact on SABI of the transaction is earnings and value enhancing.          
Net assets acquired by EABL in this transaction had a value of approximately    
US $21.2m and the net assets acquired by SABI had a value of approximately      
US $24.5m.                                                                      
ends                                                                            
For further information please contact                                          
Anna Miller Salzman, Head of Investor Relations, SAB plc                        
Tel:  + 44 (0) 207 659 0106                                                     
Mob:  + 44 (0) 7973 837 070                                                     
Ciaran Baker, Head of Corporate Communications, SAB plc                         
Tel:  + 44 (0) 207 659 0120                                                     
Mob:  + 44 (0) 7979 954 493                                                     
Mitch Ramsay, Communications Manager SABI Africa & Asia                         
Tel:  + 27 (0) 11 407 1822                                                      
Mob:  +27 (0) 83 631 0308                                                       
Notes to Editors                                                                
In Kenya, where KBL has a 90 percent market share, CBK has a 10 percent         
market share.  Following today`s agreement EABL will produce, market and        
sell the following SAB brands:  Castle Lager, Redd`s Premium Cold, Trophy       
Lager and Ranger Special Lager.                                                 
In Tanzania, TBL has about an 85 percent market share and EABL a 13 percent     
market share.  After today`s agreement TBL will produce, market and sell the    
following EABL and Guinness UDV brands under licence:  Tusker, Pilsner and      
Pilsner Ice, Guinness FES, Guinness Malta and Kibo Gold.                        
Date: 15/05/2002 10:30:00 AM Produced by the SENS Department                    



                                        
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