East African Breweries Limited (EABL) #ticker:EABL has raised its stake in Serengeti Breweries to 72.5 per cent after converting a Sh15.3 billion loan to the Tanzanian subsidiary into equity.
The Nairobi Securities Exchange-listed firm, whose ownership previously stood at 51 per cent, made the transaction to ease the subsidiary’s debt burden. Serengeti’s minority shareholders, who were diluted in the deal, could restore their original 49 per cent stake in the future by ceding half of their dividend entitlement going forward.
