Diageo to Sell 65% of East African Breweries to Asahi for $2.3 Billion

Overview

• Diageo’s disposal includes its 65% stake in EABL and a majority holding in Kenyan distiller UDVK, delivering estimated net proceeds of about $2.3 billion.
• The transaction implies a roughly $4.8 billion valuation for EABL, with reporting indicating an approximate 17x adjusted EBITDA multiple.
• Long-term licensing and transitional service agreements will allow EABL to keep producing Guinness and certain spirits such as Smirnoff and Captain Morgan under licence.
• Diageo frames the sale as part of a push to divest non-core assets and reduce leverage, with interim CEO Nik Jhangiani highlighting balance-sheet strengthening.
• Asahi calls EABL a platform for medium- to long-term growth in East Africa and says it intends to keep EABL publicly listed and its ownership at 65%.