- East African Breweries Limited has raised its ownership in Tanzanian subsidiary Serengeti Breweries, to 85 percent by acquiring additional 30 percent stake for $55 million.
- EABL, owned by UK’s Diageo, has been planning to increase its stake in Serengeti Breweries in March 2020, as part of its marketing strategy after identifying the Tanzanian market as promising for growth of beer and spirits business.
East African Breweries Limited has raised its ownership in Tanzanian subsidiary Serengeti Breweries, to 85 percent by acquiring an additional 30 percent stake for $55 million. EABL, owned by UK’s Diageo, has been planning to increase its stake in Serengeti Breweries in March 2020, as part of its marketing strategy after identifying the Tanzanian market as promising for the growth of beer and spirits business.
In a note to the investors, the UK group Diageo revealed that EABL acquired the 30 percent stake for $55 million in cash and £16 million in outstanding loans that EABL had earlier extended to the Tanzanian brewer. He informed the investors that the company’s Tanzanian business showed strong growth in the year through June 2021. The Serengeti was a major beneficiary of the UK group’s capital investment in the year ended June 2021.
EABL’s bid to grow its stake in Serengeti through the acquisition of minority shareholders has in the past courted controversy, with the Tanzanian government, aggressively protecting minority interest.
