The Board of Directors of East African Breweries PLC (EABL) has announced that Diageo PLC has agreed to sell its majority shareholding in EABL, together with its stake in the Kenyan spirits business, UDV (Kenya) Limited, to Asahi Group Holdings.
The transaction marks the first time a Japanese brewing major has made an investment of this scale in an African alcoholic beverages business.
Upon completion, Asahi will become the majority shareholder in one of East Africa’s leading consumer goods companies, assuming control of operations across Kenya, Uganda and Tanzania.
Asahi said it intends to preserve EABL’s iconic local brands while selectively introducing globally recognised brands from its international portfolio to consumers in the region.
The estimated net proceeds of the transaction to Diageo, after tax and transaction-related costs, are $2.3 billion (approximately KSh296.5 billion). This represents a valuation multiple of 17 times adjusted EBITDA and implies an enterprise value of approximately $4.8 billion (about KSh619 billion) for 100 per cent of EABL.
The transaction reflects strong confidence in the long-term growth prospects of EABL and the wider East African market, supported by favourable demographic trends and improving economic fundamentals. EABL is expected to continue operating as a listed company, building on its established legacy under new ownership.
EABL said it looks forward to a new phase of growth with Asahi in East Africa’s fast-evolving beverage market.
Asahi will benefit from EABL’s modern production facilities, experienced board and management team, strong brand portfolio, extensive route-to-market capabilities, and long-standing relationships with employees, customers and local partners.
Commenting on the transaction, EABL Managing Director and Chief Executive Officer Jane Karuku said the acquisition would accelerate the company’s growth ambitions.
“This acquisition marks a significant step in advancing our ambition to become the most celebrated beverage business in Africa. Our new majority shareholder brings deep expertise in innovation and in building successful global brands, which will support the achievement of that ambition,” she said.
Diageo Interim Chief Executive Officer Nik Jhangiani said the company was proud of EABL’s achievements across the region.
“EABL and Diageo have built the largest beer business in East Africa, driven by passionate teams serving consumers and communities across Kenya, Uganda and Tanzania. We are pleased to partner with Asahi going forward through the continued licensing of Diageo brands in the region,” Jhangiani said.
He added that the transaction delivers significant value to Diageo shareholders while supporting the group’s strategy to strengthen its balance sheet and return leverage to within its target range of 2.5x to 3.0x through the disposal of non-core assets and enhanced capital discipline.
Asahi President and Group Chief Executive Officer Atsushi Katsuki described EABL as a high-quality, market-leading business with strong brands, advanced manufacturing capabilities and a skilled workforce.
“Together with its management team and employees, we will pursue sustainable growth and long-term enhancement of corporate value, while contributing positively to the development of local economies,” Katsuki said.
The transaction is subject to regulatory approvals from relevant government authorities and is expected to be completed in 2026. EABL said there will be no changes to its operations or workforce as a result of the transaction.
During the transition period, Diageo will continue to support Asahi to ensure a smooth handover and continuity of operations.
