Diversification next
East African Breweries Ltd. (EABL) plans to float its breweries in Uganda and Tanzania in an effort to generate funds to move into the lucrative spirits market. EABL aims to buy the shares it does not own already in both breweries and then float them on the two countries’ stock markets.
EABL, whose main shareholder is Diageo, controls 64 % of Uganda Breweries Ltd. and through Diageo’s subsidiary Guinness, controls another 30 %. The balance is held by minorities. In Tanzania’s Kibo Breweries, EABL owns 86 % and intends to buy out its partner. Diageo holds 46.7 % of EABL and is expected to raise that shareholding to more than 50 % should the first float - Uganda Breweries Ltd. - go through. EABL is the fourth largest capitalised company on the Nairobi stock exchange..
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