Diageo to Sell Kenyan Drinks Stakes to Japan's Asahi for $2.3 Billion

By Joshua Kirby

Diageo is to sell its majority stakes in two Kenyan drinks businesses to Japanese brewer Asahi for proceeds of around $2.3 billion.

The U.K. drinks group, which makes Guinness beer, Smirnoff vodka and Gordon's gin, said it would sell its 65% shareholding in East African Breweries, or EABL, and its roughly 54% stake in distiller UDVK to Asahi. The remaining shares of UDVK are held by EABL.

The estimated net proceeds of around $2.3 billion come after tax and transaction costs, and give EABL an enterprise value of $4.8 billion, Diageo said in a release Wednesday.

The transaction should be completed in the second half of next year, the company said. The deal covers renewed agreements for EABL to produce certain Diageo spirits, including Smirnoff and Captain Morgan rum, the company said.

The disposals are "consistent with Diageo's strategy of appropriate and selective disposals of noncore assets, strengthening the balance sheet and supporting our previously shared commitment to de-lever," the group said.

"This transaction delivers both significant value for Diageo shareholders and accelerates our commitment to strengthen our balance sheet," Diageo's interim Chief Executive Nik Jhangiani said.

"We are excited to partner with Asahi through the licensing of Diageo brands in the region going forward," Jhangiani said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

December 17, 2025 04:40 ET (09:40 GMT)