East African Breweries Ltd said on Monday that the sale of its 20 percent stake in brewing giant SABMiller's Tanzanian unit, expected to raise 121.5 billion shillings was delayed indefinitely.
The sale, which followed EABL's move to go it alone in the east Africa region's second largest economy through purchase of a controlling stake in Serengeti Breweries, was scheduled to have started on Monday and run to November 11.
EABL confirms that although approval of the Capital Markets and Securities Authority was received on 17 October 2011, the public offer will not open on 24 October 2011, the Kenyan-based brewer said in an advertisement published in the state-run Daily News newspaper, without disclosing reasons for the delay.
EABL will inform the market as soon as a revised timetable for the offer has been agreed and approved.
A SABMiller official confirmed the delay, saying the process was awaiting approval of some documents by all parties involved, including Tanzania's capital markets regulator.
The chief executive of Orbit Securities, sponsoring broker for the placement of the 58,985,693 shares, told Reuters last week a price of 2,060 shillings per share had been set.