Heineken Takes Over ABC Brewery Limited

Accra, (Greater Accra) 3 Oct.,

Heineken N.V. today took over 90 per cent of Social Security and National Insurance Trust (SSNIT) shares in ABC brewery under an agreement signed in Accra. The shares, valued at 13.5 million dollars, makes Heineken's responsible for the brewery's management. Heineken's acquired SSNIT's majority shares because it ''fits well into the company's strategic intention to expand its brewering activities on the continent as well as demonstrating its confidence in growth opportunities available within the beer industry in Africa and Ghana in particular'', a release from the company said. ''The move'', according to analysts in the beer industry, ''reduces the competition growing in the Ghanaian beer industry between ABC and Kumasi Breweries. The company already has 50.3 per cent shares in Kumasi Brewery Limited, producers of Star and Gulder beer, Maltina and Amstel Malt. ABC Brewery Limited are the producers of ABC Larger beer, Bluna and Afri-Cola soft drinks. The move presents a new shareholding structure with Heinekens having 90 per cent. SSNIT has now bought the 10 per cent shares formerly held by the Ghana Reinsurance Organization, Ghana Venture Company Fund and the National Investment Bank. Mr. Henry Dei, Director-General of SSNIT, said the new arrangement ''means ABC Brewery Limited will soon become a major brewery in the country, putting them in strong competition with Accra Brewery Limited, brewers of Club. "This will rationalise the beer industry", he added. Mr. Dei said Heineken's has shown confidence in Ghana, only a year after entering into a similar arrangement with Unilever Ghana Limited, former owners of KBL. Mr. Ishmael Yamson, Chairman of Unilever Ghana, said the move is significant as it is a major example of direct foreign investment in Ghana. "This shows that major foreign investors are still interested in the country and want to stake their future with Ghana", Mr. Yamson said. He expressed the hope that with the infusion of Heineken's technical and commercial management expertise, ABC's operations will be immensely improved. Mr. J.L.M. Home, Heineken Director for Africa and Middle East, said he was very impressed about the acquisition, adding ''it is a great step which must be nurtured to fruition''.

The cedis continue to maintain its value against other major currencies of the world. The dollar opened this morning between ?2,260 and ?2,290 and the pound sterling, between ?3,550.00 and 3,660.00. The Deutsch Marks, between ?1,250.00 and ?1,310.00. The rate against other currencies is:

CFA 3,600 3,800

Japanese Yen 13 15

Swiss France 1,400 1,500

Canadian Dollar 1,420 1,500

French France 340 380

Dutch Guilders 1,100 1,200