The East African Breweries Limited (EABL) has raised its stake in Tanzania’s Serengeti Breweries from 51% to 74.5%, after buying additional shares at a cost of $3 million (KSh 300 million).
Previously, with the 51% share, EABL still held a larger claim in terms of assets and earnings at 72.5%
Legal shareholding moved to 55% but since we are entitled to get 50% of dividends from minority shareholders, our effective shareholding moved by 2%.
Business Daily quotes EABL Group Finance Director, Gyorgy Geiszl
Furthermore, EABL converted KSh15.3 billion loans receivable from Serengeti into equity in 2018, therefore increasing its effective interest in Serengeti from 51% to 72.5%.
Serengeti Breweries Limited is the second-largest beer producer in Tanzania, with its own brands taking 15% of the market by volume and when combined with EABL’s portfolio, accounts for approximately 28% of the Tanzanian branded beer sector.
It has three operating plants; the Dar es Salaam plant has a production capacity of 35 million liters, the Mwanza plant 65 million liters while the facility in Moshi has a production capacity of 50 million liters expandable to 80 million liters.