Beers Without Bottles As EABL Exits Glass Business
EABL's board of directors announced that it has approved the sale of Central Glass Industries to a South African company, Consol Glass Proprietary.
In a statement to newsrooms, Group Managing Director Charles Ireland said that “after a thorough strategic review, we have made the decision to exit the glass business in order to focus on our core business and un-lock additional value for our shareholders.”
“From this arrangement the ownership of CGI will change and therefore it will no longer be part of the EABL group of companies,” he added.
Commenting on the new development, Consol’s Chief Executive Officer Mike Arnold exhibited confidence in the acquisition noting that the transaction was a further step in creating a truly pan-African glass packaging company adding to Consol’s existing manufacturing footprint in South Africa and Nigeria.
CGI was established in 1987 to produce glass containers in flint, amber and green to internationally required standards, and is currently one of the leading container glass manufacturers in East Africa.
EABL did not reveal the value of the planned sale of Central Glass Industries.
EABL, which is controlled by Britain's Diageo, however, says the sale is subject to regulatory approval by the Competition Authority of Kenya and EABL shareholders.
By Wangui Ngechu
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