EABL Set to Acquire Additional 30% shareholding in Serengeti Breweries
East African Breweries Plc (EABL) has today issued a cautionary notice to members of the public and shareholders to exercise caution when dealing in its shares. In a notice sent to newsrooms this morning, the company’s board says the brewer has proposed acquisition of an additional 30 per cent shareholding in Serengeti Breweries Limited.
“Shareholders of EABL and the investing public are advised that EABL intends to enter into a conditional transaction to purchase an additional 30 per cent shareholding in Serengeti Breweries, a subsidiary of EABL,” reads the notice.“Completion of the transaction is subject to various regulatory approvals in Kenya and Tanzania.”
Serengeti Breweries Limited (SBL) is the second-largest beer company in Tanzania, with its brands accounting for 15 per cent of the market by volume and when combined with EABL’s portfolio, accounts for approximately 28 per cent of the Tanzanian branded beer sector.
The company was incorporated in 1988 as Associated Breweries Limited and changed its name to Serengeti Breweries Limited in 2002. The previous owners and management of SBL acquired the company in 2002 and commenced on a strategy of rapid expansion.
EABL acquired 51 per cent of the issued share capital of SBL in October 2010. At present, SBL has three operating plants spread out across the Tanzania; the Dar Es Salaam plant has a production capacity of 350,000 HL, the Mwanza plant capacity of 650,000 HL while the brewery in Moshi which was commissioned in January 2012 has a production capacity of 500,000 HL expandable to 800,000 HL.