Suntory Beverage & Food Limited has announced that its subsidiary, Suntory Beverage & Food Asia Pacific (SBFAP), has entered into an agreement to sell its subsidiary in Nigeria, Suntory Beverage & Food Nigeria (SBFN), to Africa FMCG Distribution Limited (AFDL).
In a statement, it said the completion of the transaction is subject to receiving merger clearance from relevant regulatory authorities in Nigeria.
It added that the total consideration of the transaction is around $14 million ($ 7 million each for the transfer of share and loan) with the sale expected to be completed in the second quarter of 2022.
CEO of SBF, Kazuhiro Saito said, “As part of our regular strategic portfolio review and considering the broad options in Nigeria to accelerate the growth of our brands, we have decided that it is best to launch a new operating model in Nigeria, leveraging the extensive distribution network, and the expertise in the local market that AFDL possesses.”
Executive Chairman of Chanrai Summit Group, Subodh Chanrai, said that AFDL is immensely happy to participate in this opportunity and partner with a global giant like Suntory.
He reasserted the commitment of the group to local value addition and helping global brands to retain their presence in Nigeria, creating opportunities for all stakeholders in the country.
Managing Director of SBFN, Anjan Patole, added that the company was pleased with the outcome of the transaction.