Dutch brewer Heineken has completed a $280m (�187m)takeover of Egypt's only beer maker, Al Ahram Beverages.

Heineken said on Thursday that Al Ahram shareholders had agreed to sell it 98.7% of the company's stock - well above the 76% threshold the Dutch brewer had set as a condition of the deal going ahead.

Heineken first approached Al Ahram on 12 September with a bid that valued the company at about $287m.

The Dutch brewer's offer came after Al Ahram said it was looking for a 'strategic investor" to take a majority stake.

Go east

Like many of its rivals, Heineken is believed to be keen to increase its presence in fast-expanding Asian and eastern European markets to compensate for sluggish beer sales in the West.

It has said that it is on the lookout for more potential takeover targets in China, Russia, and Latin America.

The takeover values Al Ahram well above its market capitalisation on 31 July of about 882m Egyptian pounds (�122m), which put it in the top 25 companies on the Cairo and Alexandria Stock Exchange.

Al Ahram shares last changed hands in Cairo on 11 September at the equivalent of $11.66.

The 105-year old Egyptian brewer, which was privatised in 1997 and has never made a loss, became the country's monopoly brewer in March last year when it acquired its competitor, El Gouna Beverages.

Cheers

Al-Ahram Beverages has struck four major production and distribution deals since privatisation - with Danish brewer Carlsberg, Irish brewer Guinness, US soft drinks producer RC Cola, and with Unilever Egypt to produce Lipton Ice Tea.

The company, whose flagship brand is Bira Stella, has continued to sell El Gouna's Sakkara beer since the acquisition.

Last year Al Ahram reported a 23% rise in pre-tax profit to 276m Egyptian pounds (�38m) despite a unilateral ban on the sale of alcoholic drinks in 18 of the country's 26 provinces.

It also produces wines, having bought and turned around the former state-owned winery, Gianaclis, and soft drinks.

Analysts say that the company's strong position in the Egyptian market outweighs the political risks of investing in the region.