EABL to increase stake in Serengeti

Dar es Salaam. East African Breweries Limited (EABL) wants to acquire additional four per cent stake from Serengeti Breweries Limited (SBL).

The deal, whose value is yet to be established, awaits the approval of the Tanzania’s Fair Competition Commission (FCC).

FCC said in a public notice yesterday that it had received a merger notification to the effect that EABL, a company incorporated in Kenya, intends to acquire additional 4 per cent of the shares in SBL, which is incorporated in Tanzania.

Speaking to The Citizen, SBL corporate relations director John Wanyancha said EABL currently holds 51 per cent of the shares in SBL.

If the transaction is approved, EABL’s shareholding will increase to 55 per cent.

Mr Wanyancha did not give more details over who was selling the stake.

However, he said the seller of the 4 per cent would continue holding shares in SBL.

According to him, the remainder of the minority shareholders will maintain their existing shareholdings, as EABL is already a majority shareholder, the transaction will not result in a change of control.

“The transaction will also not affect existing arrangements with suppliers and customers in any way,” he said

According to notification, the acquiring firm is a regional beverages manufacturing company, with collection of beer and spirits brands.