Capital Ethiopia Newspaper

Duet to buy substantial share in Dashen Brewery

Dashen Brewery, the youngest local brewery, is under negotiation with the asset manager Duet Group, a British consortium to sell substantial shares. In September this year, Dashen that was established in 2000 by Tiret (endowment fund) in Gonder, took part in a bid to acquire Meta Abo Brewery in a joint venture with the British firm, though their offer was much lower than other bidders. Dashen with Duet had offered 173 million dollars for Meta.
The two firms are said to have agreed that if the consortium was successful, Meta would be under Dashen while Duet would get 51 percent of Dashen.
Sources said that after the Meta bid failed the consortium continued negotiating to own shares in Dashen brewery located in Gonder, 738Km north of Addis Ababa; the only brewery in the northern part of the country.
Tadese Kassa (Tinkishu), CEO of Tiret and board chair of Dashen, told Capital that the case is in its early stage.
Sources said that representatives of the consortium had been visiting the brewery on several occasions and also held talks with the management and board of the brewery.
According to sources, the two parties are discussing share percentage and payment that Duet will make.
“Based on the first draft of negotiations Duet is to secure over 40 percent of the brewery shares for over 60 million dollars payment for Dashen,” sources said. 
Even though it is young, Dashen has gained a dominant share in the Ethiopian market.  Dashen’s subsidiary, Gonder Malt Factory, which will be the second malt factory for the country, is expected to commence its production before the end of this year.
Duet is a global alternative asset manager founded in 2002 with over 2.4 billion dollars of equity under management as of January 2011 across its hedge funds and real estate and infrastructure investments. The group employs 73 professionals in London, New York, Tokyo, Singapore, New Delhi, Dubai and Istanbul.
In the past fiscal year the government has transferred Harar and Bedele breweries for Heineken, the Netherlands based and one of the biggest breweries in the world, while in September this year the other dominant UK based distiller Diageo won the bid for Meta Abo at the cost of 225 million dollars.
BGI Ethiopia is the biggest brewery in the market share with its three breweries in Addis, Kombolcha and Hawassa, while other new share companies are on their way to enter the beer industry.