Business
Diageo agrees to sell EABL shareholding to Asahi
Diageo has agreed to sell its 65% shareholding in East African Breweries plc (EABL) and its stake in UDVK to Asahi Group Holdings, Ltd for an estimated net proceeds of $2.3 billion after tax and transaction costs, representing a 17x adjusted EBITDA multiple and an implied enterprise value of $4.8 billion for EABL. This strategic disposal of non-core assets is expected to de-lever Diageo's balance sheet by approximately 0.25x and is consistent with its strategy to strengthen its financial position. Diageo will enter into long-term licensing agreements with EABL for the production and distribution of its brands, including Guinness, local spirits, and ready-to-drink products, as well as the distribution of Diageo's international spirits. The transaction, which is subject to regulatory approvals, is anticipated to complete in the second half of calendar year 2026. Disclaimer*
About this update from Diageo Plc
[{"type":"text","content":"\n\n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (\"MAR\"), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR\nFOR IMMEDIATE RELEASE\n17 December 2025\n \nDiageo enters into agreement to sell its shareholding in East African Breweries plc (\"EABL\") to Asahi Group Holdings, Ltd (\"Asahi\")\n \n· Announcement today of agreement by Diageo to sell to Asahi its 65% shareholding in EABL, and its shareholding in the Kenyan spirits business, UDVK.\n· Disposals consistent with Diageo's strategy of appropriate and selective disposals of non-core assets, strengthening the balance sheet and supporting our previously shared commitment to de-lever.\n· Estimated net proceeds after tax and transaction costs of $2.3bn, equating to a multiple of 17x adjusted EBITDA, resulting in an implied enterprise value for 100% of EABL of $4.8bn.\n· Transaction will de-lever Diageo's balance sheet by c.0.25x.\n· Diageo has committed to enter into long-term licensing agreements with EABL to secure the continued production and distribution of Guinness, local spirits and ready-to-drink brands, as well as the distribution of Diageo international spirits.\n· The acquisition of EABL represents the first time a major Japanese brewing business has made an investment of this size in an African alcohol beverage business. Asahi is a strong, responsible and experienced steward for the next phase of growth for EABL.\n· Subject to regulatory approvals, completion is expected in the second half of calendar year 2026.\n \nToday, Diageo announces that it has entered into an agreement to sell its 100% shareholding in Diageo Kenya Limited, which holds 65.00% of the shares in EABL to Asahi, including its shareholding in the Kenyan spiri...