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EABL seeks stake in Serengeti Breweries

NAIROBI, Kenya, Jul 25 – East African Breweries Limited (EABL) is mulling to terminate a brewing and distribution agreement with Tanzania Breweries Ltd as it gains an acquisition in Serengeti Breweries Ltd, the second largest brewing Company in Tanzania.

EABL Company Secretary Agnes Murgor said in a statement on Saturday that the company was in the process of carrying out the acquisition process

"The board of directors of East African Breweries limited (EABL) announces that Thursday the 16th July 2009 EABL entered into a conditional agreement with the shareholders of Serengeti that could EABL acquiring a substantial interest in Serengeti Breweries Limited," the statement said.

The acquisition of Serengeti Breweries Limited is however subject to a number of conditions, including obtaining the approval of the Tanzania fair competition Commission and the EABL shareholders.
 
Mrs Murgor indicated that some issues have arisen between EABL and Tanzania Breweries Limited, which are currently the subject of legal proceedings in London.

"Therefore, pending further announcement Tanzania Breweries limited continues to be the sole and exclusive manufacturer and distributor EABL products in Tanzania," she said.

Mrs Murgor issued a warning to investors that these developments are likely to have a significant impact on the EABL group\’s business in Tanzania.

"Consequently, shareholders and other investors are advised to exercise care when dealing with EABL shares on the Nairobi stock Exchange, the Dar es Salaam stock Exchange and the Uganda securities exchange until further information regarding these developments is made available," she said.

Other Tanzania Breweries Limited  shareholders include South African brewing giant South African Breweries Miller) and the Tanzanian public.

Serengeti is owned by a group of private investors.

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EABL shares on the Nairobi Stock Exchange closed on Friday at Sh148. TBL shares ended on the Dar es Salaam Stock Exchange at Sh1800 on Thursday, according to the latest bourse data.
 

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