Following Friday evening’s election held by the general assembly at Addis Ababa Exhibition Center, Bavaria N.V. will have two board positions from a total five on Habesha Brewery board.
Eskinder Desta, promoter and former board chair of Habesha, told Capital that the number of board members has also declined to five from the former twelve positions.
He said the Dutch based brewer will now have forty percent representation and the three remaining seats will be secured by other shareholder representatives.
Habesha’s former board members and main promoters; Nahusenaye Araya, Mesfin Abi (Eng) and Eskinder were elected. Two representatives from Bavaria will be assigned by the Dutch company, and the new chair will be elected the new board.
Bavaria, one of popular brands in the world, has recently bought 35 percent share that is worth 87.5 million birr from Habesha, one of the upcoming breweries.
Habesha floated 250 thousand shares valued at 1,000 birr each for the public a year ago. From that it collected 162.6 million birr within a single year. This has been considered one of the most successful share sales in Ethiopia.
Because Bavaria has majority ownership it will make it easier for the Development Bank of Ethiopia (DBE) to commence the project within a short period of time.
In September 2011 the share company signed a turnkey contract with Lehui Food Machineries, a Chinese company to build the plant within 15 months. According to the turnkey agreement, the total project cost will be 510.7 million birr.
The brewery plans to produce about 300,000 hectoliters (hl) annually with plans for an additional expansion to 500,000hl. It is expected to start production in the first half of 2013.
Lehui won the contract for the designing, manufacturing, erecting and commissioning of Habesha’s Brewery on a 7.5hct plot located in Debre Berhan. It had offered the lowest price out of four shortlisted companies.
The local new brand, which is one of the first breweries formed by the public, submitted its loan request for DBE to get 70 percent of the total investment cost of the project.
Bavaria N.V. is a family owned brewery group which has more than 300 years of experience in brewing and managing successful overseas investment ventures. The company has a presence in 120 countries.
The Ethiopian beer industry competition has been growing since giant international breweries joined the sector in the beginning of the budget year. Currently, Diageo has acquired Meta Abo brewery and the other prominent brand Heineken owns Harar and Bedele breweries since they bought the factories from the government about a year ago.
Both the international companies have disclosed that they will invest a huge amount of money to expand their production. In addition to that the London based equity firm Duet has bought a dominant share from Dashen Brewery, the youngest brewery based in Gonder. After the Dashen and Duet deal concluded early this year, the brewery has announced that it will erect another new brewery in Debre Birhan.
BGI Ethiopia, which is popular with its St George and Castel beer brands locally and internationally is the biggest brewery with 56 percent market share.