Danish brewer Carlsberg has announced the sale of its stake in Carlsberg Malawi Limited to Castel Group for an undisclosed fee, as it executes its strategy to slim down the company and focus on core businesses.
Castel Group is one of the world leaders in wines, beers and soft drinks production, with a wide existence in Africa and Europe.
As part of the deal, Carlsberg has signed a license agreement allowing Carlsberg beer to continue to be produced and sold in Malawi, it said.
Carlsberg said it has sold its major stake inline with the Group’s new strategy to focus their efforts “against a narrower and more precisely-defined set of priorities.”
Earlier this year, the brewer laid out a new strategic plan that it hopes will position it for growth and reverse a lacklustre earnings trend amid pressure from declining eastern European markets and a weak ruble, in particular.
Wednesday’s sale of its 59% Malawi stake is pending regulatory and corporate approval, it said.
Local conglomerate Press Corporation Limited, which used to hold a 50 percent stake in Carlsberg Malawi, recently shed off 10 percent of its equity which went to the, then parent firm, Carlsberg Denmark.
The company’s workers Union representatives are feaing jb cuts owing to the major shakeup.
Workers Union General Secretary, Wilson Sochera asked for more time before he could respond on the matter.