By MIKE MANDE Oct 10, 2010 The East African East African Breweries is set to sell its 10 per cent stake in Tanzania Breweries Ltd to the public prior to its acquisition of Serengeti Breweries. The East African brewing giant aims to control 49 per cent of Serengeti in Tanzania, an acquisition that will facilitate its expansion within the region. The sale of its shares in TBL to the public, stipulated by Tanzania Fair Competition Commission (FCC), will end the longstanding dispute with TBL over the acquisition of Serengeti shares. The EastAfrican has learnt that EABL will carry out the flotation as soon as it clears pricing issues with the Capital Markets and Securities Authority. A senior government official told this newspaper that EABL wants to offload the shares at TBLs current trading price, arguing that the shares are undervalued by between 20 and 30 per cent. TBL is trading at Tsh1,780 ($1.19). But the FCC wanted the brewer to offload its 10 per cent stake in TBL through an IPO which was Tsh550 ($0.36) a share to give more chance for the Tanzanians to own the company. In July FCC approved the acquisition of a majority interest in Serengeti by EABL subject to conditions. Consolidation EABL said the deal will consolidate and build upon the achievements made by the management of Serengeti in growing the company and its brands. In 2002, EABL and SABMiller Plc the majority shareholder in TBL affected a share swap of their interests in their subsidiaries: Kenya Breweries Ltd and Tanzania Breweries Ltd. EABL acquired 20 per cent of the equity of Tanzania Breweries. SABMiller acquired a 20 per cent equity stake in Kenya Breweries and agreed to close down two factories on either side of the border one in Kilimanjaro and other in Nairobi. Should the Tanzania public fail to purchase all the shares, the second priority will go to SABMiller to consolidate its equity stake in TBL. The Serengeti deal, which gives EABL a controlling stake in Tanzanias second placed brewer, not only expands its production capacity across the region but also clears the marketing hurdles that the firm has been facing during the seven-year marriage with the SABMiller-controlled TBL. EABL is a Kenya-based holding company that manufactures branded alcoholic and non-alcoholic beverages.