Namibia Breweries Limited secured bridge financing to acquire the shareholding as part of its acquisition of Distell under the Bridge Facility Agreement worth N$850 million, the company said in the annual report for the financial year that ended 30 June.
“The group does not intend to utilise any portion of the N$850 million cash balance to fund normal operations,” NBL said.
Bridge financing, often in the form of a bridge loan, is an interim financing option used by companies and other entities to solidify their short-term position until a long-term financing option can be arranged.
Various facilities have been provided by First National Bank of Namibia to NBL include an overdraft facility of N$100 million, business credit card facility of N$350 000, fleet cards facility of N$3 million, guarantees of N$8, 1 million, Wesbank rental facility of N$ 700 000, short term pre settlement facility on derivatives of N$10 million, pre settlement facility on fuel hedges of N$5 million and pre settlement facility on interest rates of N$21 million.
The new NBL reporting structure now includes the Distell companies in Namibia. The acquisition includes Distillers Corporation Namibia (Proprietary) Limited and Namibia Wines and Spirits Limited), in line with Heikeken implementation agreement with Distell Group Holdings Limited (Distell).
“We are delighted to welcome over 5 400 talented employees of Distell and Namibia Breweries into Heineken and look forward to adding more than €1 billion in net revenue and €150 million operating profit to our African footprint. By combining the strengths of all three entities, we can leverage our expertise and resources to foster growth, create jobs, and contribute to the overall economic development of the region,” Heineken CEO and chairman of the Executive Board, Dolf van den Brink.
The Distell Namibia’s brands now part of the NBL portfolio, now offer an even more diverse selection of products to suit any occasion, NBL said.