East African Breweries Limited (EABL) has issued a cautionary statement highlighting a proposed investment in a new brewery in Kisumu which is estimated to cost about Ksh 15 Billion.
The investment is likely to spread over a period of 2 years prior to completion. The company also noted that the modalities of funding for the project are still under deliberation and shall be communicated to the regulators and shareholders in due course.
The new project is expected to lift the demand for sorghum and create direct and indirect jobs. The NSE-listed brewer which is majority owned (50.02%) by Diageo is expected to push sorghum demand from the current 20,000metric tones to around 40,000 in the next 5 years.
EABL closed Wednesday’s trading at Ksh 259.00 per share.
“The shareholders of East African Breweries Limited and the public are advised to exercise caution when dealing in shares of the Company.”
