Ericsson wrote:https://www.businessdailyafrica.com/bd/corporate/companies/eabl-buys-extra-sh6bn-stake-dar-subsidiary-3494816
East African Breweries Limited has completed acquisition of additional 30 percent stake in Tanzanian subsidiary for $55 million (Sh5.98 billion), raising its ownership to 85 percent.
“We got one minority shares. We decided to buy them out and they also wanted to sell. The shareholding changed from 55 to 85 percent,” EABL managing director Jane Karuku said without giving further details.
British drinks group Diageo disclosed EABL acquired the 30 percent stake late last year for $55 million (Sh5.98 billion) in cash and £16 million (Sh2.1 billion) in outstanding loans that EABL had earlier extended to the Tanzanian brewer.
“On 21 October 2020 and on 6 November 2020, EABL completed the acquisition of 13.3% and 16.7%, respectively of shares in Serengeti Breweries Limited for a total consideration of $55 million (£42 million) in cash and £16 million in the form of shareholder loans outstanding to EABL,”Diageo wrote in a note to investors.
The Serengeti was a major beneficiary of the giant brewer’s Sh7.8 billion capital investment in the year ended June 2021, largely targeted at the Moshi plant which EABL has identified as a major player in its growth strategy for the spirits business.
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