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Diageo PLC on Wednesday said it has agreed to sell Diageo Kenya Ltd to Japan’s Asahi Group Holdings Ltd for $2.3 billion. The London-based owner of Guinness and Johnnie Walker whisky said the sale includes its 65% shareholding in East African Breweries PLC and its 54% shareholding in the Kenyan spirits business, UDVK. Sale proceeds of $2.3 billion equate to a multiple of 17 times adjusted earnings before interest, tax, depreciation and amortisation, resulting in an implied enterprise value for 100% of EABL of $4.8 billion. The transaction will de-lever Diageo’s balance sheet by around 0.25 times, the company said. The sale is ‘consistent’ with a strategy of ‘appropriate and selective disposals of non-core assets,’ Diageo said, ‘strengthening the balance sheet and supporting our previously shared commitment to de-lever.’ Interim Chief Executive Nik Jhangiani said: ‘We remain committed to returning the group to well within our target leverage ratio range of 2.5 - 3.0x through disposals of non-strategic, non-core assets, alongside delivering positive operating leverage, and tighter capital discipline.’ He said the sale represents ‘material steps in delivering on this commitment.’ Shares in Diageo rose 1.5% to 1,707.00 pence each in London on Wednesday morning. 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. Subject to regulatory approvals, completion is expected in the second half of 2026. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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