The Board of Directors of East African Breweries PLC (EABL) has confirmed that Diageo PLC will sell its majority stake in EABL and its shareholding in UDV (Kenya) Limited to Asahi Group Holdings.
This marks the first major investment by a Japanese brewing giant in Africa’s alcoholic beverage sector, underscoring East Africa’s growing appeal to global investors.
Asahi to Lead Operations Across Kenya, Uganda, and Tanzania
Under the transaction, Asahi will assume majority ownership of EABL, taking control of operations in Kenya, Uganda, and Tanzania. The company has pledged to preserve beloved local brands while introducing globally recognised names such as Asahi Super Dry, Peroni Nastro Azzurro, Kozel, Pilsner Urquell, and Grolsch to East African consumers.
Transaction Value and Market Confidence
- Net proceeds: $2.3 billion (approx. Kshs 296.5 Bn) after tax and transaction costs
- Valuation: Implied enterprise value of $4.8 billion (approx. Kshs Bn)
- Multiple: 17x adjusted EBITDA
This valuation reflects strong investor confidence in EABL’s growth prospects, supported by East Africa’s robust demographics and expanding consumer base.
Context: Diageo’s Strategic Review Before the Sale
Diageo initiated a strategic review of its 65% stake in EABL in July 2025, with advice from Bank of America and Goldman Sachs. Analysts at the time estimated EABL’s beer business could be worth up to $2 billion (~KSh 258Bn), significantly higher than its Nairobi Securities Exchange valuation of $1.2 billion (~KSh 155Bn).
The review aligned with Diageo’s asset-light strategy, which aims to free capital amid global headwinds. Potential buyers considered included Heineken NV, Castel Group, and AB InBev, highlighting strong industry interest in East Africa’s beer market.
This background illustrates how the eventual sale to Asahi represents Diageo’s largest African exit to date, following earlier disposals in Ghana, Nigeria, Cameroon, Seychelles, and Ethiopia.
Perspectives
Jane Karuku, MD & CEO of EABL:
“This acquisition marks a significant step in accelerating our growth ambition of becoming the most celebrated beverage business in Africa.”
Nik Jhangiani, Interim CEO of Diageo:
“This transaction delivers significant value for Diageo shareholders while ensuring continued licensing of Diageo brands in the region.”
Atsushi Katsuki, President & CEO of Asahi Group Holdings:
“Together with EABL’s excellent management team and employees, we will pursue sustainable growth and contribute to the development of local economies.”
Strategic Impact and Timeline
- Completion: Expected in calendar year 2026, subject to regulatory approvals
- Operations: No changes anticipated in EABL subsidiaries; no job losses expected
- Transition: Diageo will support Asahi to ensure a smooth handover
About Asahi Group Holdings
Founded in Japan in 1889, Asahi is a global leader in beer, alcohol, non-alcoholic beverages, and food. With a global presence across Japan, East Asia, Europe, and the Asia Pacific, Asahi delivers over 10 billion litres annually, generating revenues of JPY 2.9 trillion (approx. USD 19bn).
