Following East African Breweries acquisition of majority 51% stake in Serengeti Breweries Ltd(SBL) from a group of local investors now they are required by competition regulators(FCC) to offload their holding in Tanzania Breweries by way of public Offer(PO). This will result in to listing the 20% holding in TBL on the Dar es salaam Stock Market(DSE) soon. The performance of the company has been sound and gives a great prospect for the future. The market capitalization of TBL is TZS536.77 Bln and 20% translates to TZS 107.35 Bln which should be bought by investors.
Listing of additional 20% on DSE will see more activity on the TBL's counter which may result to higher prices soon after trading starts.Liquidity and Demand are good factors in determining the market price.
Currently market price per share stands at TZS 1820 and EPS 297 for 2010 therefore PE ratio of 6.13 which is a good point of holding the company for the long run.
Finally I'm advising boozers and teetotalers to hold tight their wallets for the coming investment opportunity.
Below find TBL's Ten year performance Review!
By Emmanuel Akyoo
Epak Capital Ltd
