Overview:
Global beverage giant Diageo plans to sell part of its East African Breweries holdings, potentially impacting the regional market
NAIROBI, Kenya — British alcoholic beverage giant Diageo Plc is exploring options to optimize its assets, including the potential sale of a portion of its stake in Kenya’s East African Breweries Ltd. (EABL), the company announced Tuesday.
Diageo, which holds a 65% majority stake in EABL, has engaged Bank of America Corp. and Goldman Sachs Group Inc. to gauge investor interest. The move aims to free up capital for future growth initiatives.
Among the options being considered is the sale of EABL’s beer production assets for an estimated $2 billion. EABL, headquartered in Nairobi, produces beer, spirits, and soft drinks, distributing to 10 African countries, including Kenya, Uganda, and Tanzania. Its current market value is $1.2 billion.
Other major brewing companies, such as Heineken NV, CastelGroup, and Anheuser-Busch InBev SA, may be interested in acquiring shares in EABL.
Diageo has been strategically divesting assets in Africa in recent years. The company previously sold stakes in Seychelles Breweries Ltd. and its Nigerian division. More recently, Diageo reached an agreement with Castel Group to sell 80.4% of its shares in Guinness Ghana Breweries Ltd., Guinness Cameroon S.A., and Meta Abo in Ethiopia.
Diageo Plc, based in London, England, operates in 80 countries and has 132 enterprises worldwide. It is a leading distributor of Scotch whisky and other spirits.