Habesha Breweries S.C. has officially extended an offer to its shareholders to sell their shares at 5,900 birr each, a move that comes amidst ongoing controversy over the company’s management decisions and its registration process on the Ethiopian Securities Exchange (ESX).
The offer—which includes a generous 34% premium above an earlier Deloitte valuation—is part of the majority shareholder Bavaria Overseas Breweries’ (BOB) request to purchase shares from local Ethiopian shareholders. According to company communications, the sale period has been extended until August 31, 2025, to allow interested shareholders more time to participate. Shareholders are urged to visit the company’s Shareholder Relations Division to sign sale and purchase agreements under the terms outlined.
This buyout offer follows sharp disagreements among shareholders about company actions during this transitional period. Local shareholders holding roughly 63.41% of the shares have signed contracts agreeing to the sale, but some Ethiopian shareholders have expressed serious concerns. Previously, shareholders were told that share transactions would be suspended until the company’s ESX listing—expected to be completed by November 2025 under the oversight of CBE Capital Investment Bank—is finalized.
The core of the dispute arises from allegations that while minority shareholders are restricted from converting dividends into capital or accessing the stock market, the majority owner Bavaria is being afforded a special opportunity to increase its stake. Some shareholders argue that these actions lack legal basis and unfairly disadvantage local investors by locking their funds into low-yield assets while Bavaria expands control.
Eng. Mesfin Abi, Chairman of Habesha Breweries’ Board, responded to the controversy by attributing much of the tension to misunderstandings about the registration process. He explained that share sales must be conducted through formal capital market channels once registration is complete. Until then, shareholders have two options: wait until the ESX listing enables share trading or accept a 20% cash dividend approved by the General Assembly. The company has already distributed such dividends to shareholders, recognizing their rights.
Recent financial data underscores the brewery’s strong market position. As of December 31, 2024, Bavaria Overseas Breweries owns 64.02% of shares, local shareholders—numbering over 8,300 individuals—hold 25.97%, and Linssen Participation B.V. owns 10.01%. The company’s fully paid-up capital totals approximately 3.517 billion birr.
This episode unfolds as Habesha Breweries prepares for its significant transition onto Ethiopia’s emerging capital market structure. The registration and listing process aims to modernize share management through practices such as dematerialized (paperless) share issuance and enhanced regulatory oversight.
Despite the heated debates, shareholders will soon face a decisive period that could reshape ownership and influence the company’s future trajectory. Capital’s repeated efforts to elicit further detailed comments from Habesha Breweries have not yet been successful.
