Minority investors are set to inject an additional Sh3.2 billion capital into Serengeti Breweries, a subsidiary of East African Breweries (EABL) , as part of a deal with the Kenyan brewer.
EABL in June 2018 converted the Sh15.3 billion loan it had provided to Serengeti into equity to ease the Tanzanian company’s debt burden.
This saw its stake in the subsidiary rise from the previous 51 per cent to 72.5 per cent. EABL says in its latest annual report that its interest in Serengeti will revert to the original 51 per cent in the future once Serengeti raises Sh3.2 billion from the minority investors.
The minority shareholders made an initial payment of Sh16 million or 0.5 per cent of the amount owed to Serengeti in the year ended June.
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