East Africa Breweries Postpones Tanzania Share Offer
26 October 2011 - 2:44AM
Dow Jones News
East Africa Breweries Ltd. (KBL.NR), or EABL, on Tuesday
confirmed it had suspended plans to sell its 20% stake in Tanzania
Breweries, and said it would make an announcement as soon as it
intended to go ahead with the sale.
"EABL will inform the market as soon as a revised timetable for
the offer has been agreed and approved," EABL said in a press
notice.
The share sale was intended to raise about 7 billion Kenyan
shillings ($69.6 million) from the Dar es Salaam Stock Exchange,
part of the KES22.5 billion required to buy back the 20% stake of
Kenya Breweries currently held by SABMiller PLC (SAB.JO). The sale
would have opened Monday and closed Nov. 11, Kenya's Business Daily
reported Tuesday.
"EABL confirms that although approval of the Capital Markets and
Securities Authority was received on Oct. 17, the public offer will
not open on Oct. 24," EABL said in its press notice.
It didn't provide any reasons for the delay.
U.K.-based brewer Diageo PLC (DEO) holds a 50.03% stake in
EABL.
-By George Mwangi, contributing to Dow Jones Newswires; +254 735
781 853; gmwangi0@gmail.com