British drinks maker Diageo will sell its entire stake in Nairobi-based East African Breweries (EABL) for $2.3 billion, the company’s second major divestment from the continent in as many years.
EABL’s board received notification of Diageo’s intention to sell on Tuesday, a move that will see the UK giant sell its 65% stake to Japanese beverage group Asahi. It ends Diageo’s review of its East African business that began earlier this year, with top banks including Goldman Sachs reportedly enlisted to help the company assess its options. Kenya is considering raising its minimum legal drinking age from 18 to 21, which may have been an important factor in Diageo’s consideration to exit EABL.
The sale to Asahi, if it clears regulatory hurdles, would mark Diageo’s second major divestment since it sold its stake in Guinness Nigeria last year to Singaporean group Tolaram, in pursuit of “a flexible and asset-light beer operating model.”
