Shareholders of the Tanzania Serengeti Breweries Ltd are in final talks with the East African Breweries Ltd, in a move that will see the latter take over a stake in the brewing firm.

Mark Bomani, chairman of Serengeti said the company will then produce five EABL brands — Tusker, Guinness, Pilsner, Malta Guinness and White Cap — by May, after a three month transition period which began on February 22 ends.

The transition period was to allow the company to end a manufacturing and distribution agreement with Tanzania Breweries Ltd, a SABMiller subsidiary in which EABL holds a stake.

SBL began operations in 1996 as Associated Breweries Ltd (ABL) before it changed hands in 2002, after three local businessmen, Vital Meth, Mark Bomani and Mwita Gachuma acquired the firm.

Early in the year, the company injected over $40 million for the construction of a new plant with a capacity to produce 500,000 hectolitres in Moshi, Kilimanjaro region, in a bid to meet the local demand.

Teddy Mapunda, the public relations and communications manager of Serengeti said the firm had, in the past five years grown by 10 per cent and that the partnership with EABL would create an opportunity for further growth.

Ms Mapunda said during the 2008 financial year, Serengeti paid over $24 million in taxes, making it one of the largest taxpayers in the country.

The company produces and distributes Serengeti Premium Lager, Serengeti the Kick, Stella Artois under license from Inbev and Vita Malt Plus, which add up to 180,000 hectolitres of beer per month.

Vita Malt Plus is a non-alcoholic beverage produced under licence from Royal Unibrew of Denmark, northern Europe’s second largest producer of non-alcoholic drinks.