Diageo to sell its majority stake in Tusker owner EABL with Asahi deal

Diageo has agreed to sell its 65% stake in East African Breweries Plc (EABL) to Asahi Group, in a multi-billion dollar deal with the Japanese beer company.

The transaction is, specifically, for Diageo Kenya Limited, which holds the 65% stake in EABL plus Diageo's 53.68% stake in Kenyan spirits company UDVK.

Net proceeds after tax and transaction costs are expected to reach $2.3 billion, according to Diageo, equating to a 17x adjusted EBITDA multiple and implying an enterprise value of $4.8 billion for 100% of EABL.

At the same time, Diageo has committed to enter long-term licensing and service agreements for continued local production and distribution of Guinness and other brands in the region.

“We are incredibly proud of the achievements of EABL and our colleagues across Kenya, Uganda and Tanzania,” said Nik Jhangiani, Diageo interim CEO.

EABL owns Kenyan beer brand Tusker, along with Ugandan brand Bell Lager, Tanzanian beer brand Serengeti along with spirits brands like Kenya Cane, Uganda Warangi - plus, under licence from Dieago, it has distributed international brands like Guiness, Baileys, Captain Morgan, Gordons', Tanqueray, Johnnie Walker and Smirnoff in the African region.

EABL reported net sales of $996 million in its year ended 30 June, with earnings (EBITDA) of $258 million and net income of $94 million, and it had net debt of $229 million.

Asahi expects that EABL will retain its listing on the Kenya, Uganda and Tanzania stock exchanges. Subject to regulatory approvals, completion is expected in the second half of calendar year 2026.

The Recap

• Diageo to sell its 65% stake in EABL to Asahi.
• Estimated net proceeds of $2.3 billion, a 17x adjusted EBITDA multiple.
• Completion subject to regulatory approvals, expected in second half 2026.