Diageo Plc UK, a global brewing giant has sold its entire stake in East African Breweries Limited(EABL) in a deal that will see it pocket some KSh 296.6 Billion (US$2.3 Billion) from the sale to Japan’s Asahi Group Holdings. Diageo is also offloading its 53.68% stake in Kenya’s spirits manufacturer UDV Kenya, also to the Japanese.
Asahi Group Holdings, Ltd. is a global leader offering a diverse collection of brands centred on beer, alcohol and non-alcohol beverages, and food. Asahi is rated one of the top 10 global beer makers and one of the largest players in the Asian alcohol business.
Diageo PLC has been in Kenya’s beer business for over 100 years and thus its exit marks a new chapter for Kenya and East Africa’s beer business.
The sale by the UK firm to Asahi is expected to generate approximately $2.3 billion (roughly Sh299 billion at current exchange rates) in net proceeds for Diageo UK.
Beyond the EABL stake, the deal includes Diageo’s 53.68% shareholding in the Kenyan spirits firm UDV Kenya Limited (UDVK). This transaction is subject to regulatory approvals and is anticipated to close in the second half of 2026.
Following this announcement, EABL on December 17, 2025 temporary stopped trading of its shares at the Nairobi Securities Exchange Plc (NSE). In a statement, the NSE said release of a cautionary announcement by the issuer during trading hours, coupled with prior circulation of market-sensitive information, prompted this action.
The measure has been taken to promote orderly trading and ensure equitable access to information among all market participants. Trading in the EABL counter will resume this Thursday 18th December 2025.
On the afternoon of Tuesday 16th December, 2025 the board of directors of EABL received notification from its parent company Diageo plc (Diageo) of the imminent agreement to sell, subject to the satisfaction of certain regulatory conditions, its entire interest in Diageo Kenya Limited and in UDV (Kenya) Limited (UDVK) to Asahi Group Holdings, Ltd.
Diageo owns 65% of the issued shares of EABL through its wholly-owned indirect subsidiary Diageo Kenya Limited, and 53.68% of the shares of UDVK through its wholly-owned subsidiary Diageo Great Britain Limited.
As such, the Transaction will result in Diageo disposing of all of its stake in EABL. 35% of the issued shares of EABL are held by public shareholders (the General Shares).
Diageo has notified the Board that Asahi intends to submit an application to the Capital Markets Authorities in Kenya, Uganda and Tanzania seeking an exemption from the requirement to make a mandatory takeover offer for the General Shares.
Diageo has notified the Board that it and Asahi will be making separate announcements regarding the Transaction and, once made, the Board will make a further announcement in compliance with the Capital Markets (Public Offers, Listing and Disclosures) Regulations, 2023.
The Transaction may have a material effect on the price of EABL’s securities.
Accordingly, until further announcements are made, EABL shareholders, investors and the public are advised to exercise caution when dealing in EABL’s securities on the Nairobi Securities Exchange, the Uganda Securities Exchange and the Dar es Salaam Stock Exchange.
Diageo UK Has Been On A Phased Exit from Africa
The UK Brewer has been divesting from the beer business in Africa for years and Kenya was a matter of not if but when it will exit.
The global giant begun its exit in 2022 through the sale of Meta Abo Brewery, followed by the 2023 sale of Guinness Cameroon, the 2024 sale of Guinness Nigeria, and the 2025 sale of Guinness
Ghana which left the Group with two listed subsidiaries in the continent.
These were EABL (with 65% shareholding) in East Africa and Seychelles Breweries Limited (54.40% shareholding) in Seychelles.
Analysis by Standard Investment Bank(SIB) signalled a potential medium-term exit of the anchor shareholder in the East African subsidiary, in line with its group’s asset-light business model.
Diageo exit and Asahi game plan
Asahi has underscored its intention not to acquire the publicly traded shares of EABL beyond a 65.00% shareholding, and its intent to maintain EABL’s listings. This is, however, subject to the relevant regulatory exemption of extending the takeover offer to EABL’s minority shareholders.
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