Shares of East African Breweries Limited (EABL), Kenya’s largest beer producer, surged to their highest level in nearly a decade on Thursday following an announcement that Diageo would sell its controlling stake to Japan’s Asahi Group Holdings. This landmark transaction, valued at $2.3 billion, effectively reshapes the ownership landscape of East Africa’s dominant brewing group, reflecting significant foreign interest in the region’s consumer sector.

Real-time trading data from the African Exchange indicated that EABL shares on the Nairobi Securities Exchange (NSE) rose by 19.3 percent, closing at KES 299.7 ($2.0). This marked a substantial increase from KES 251.3 ($1.7) recorded in the previous session. The last time the stock traded at such a valuation was on June 13, 2016, when it reached KES 300 ($2.0).

EABL commenced the year with a robust performance, gaining 70.8 percent on its price valuation, securing its position as the 18th best performer on the NSE in terms of year-to-date returns. Furthermore, the stock has accrued 28 percent over the past four-week period alone, making it the second-best performer on the exchange. Over the preceding three months, EABL stood as the 19th most traded stock on the NSE.

Trading in EABL shares was temporarily halted on Wednesday by the NSE, following a cautionary announcement related to Asahi’s acquisition plans. The halt aimed to promote orderly trading and ensure equitable access to market-sensitive information for all participants. Trading activities resumed as scheduled the subsequent day.

This transaction represents the largest-ever entry by a Japanese brewer into Africa’s alcoholic beverages market, underscoring a strategic shift in global investment patterns. As part of the comprehensive agreement, Diageo will fully exit its East African operations, divesting its entire ownership of Diageo Kenya Limited, which holds the EABL stake, alongside its 53.68 percent stake in UDV Kenya Limited, a Kenyan spirits producer and importer.

Diageo’s divestment aligns with its broader strategy of streamlining operations and offloading certain African assets. The British multinational has previously executed similar exits and stake sales in Nigeria, Ghana, Cameroon, Ethiopia, and Seychelles as part of a wider corporate turnaround initiative, focusing on a more capital-light business model in the region.

The estimated net proceeds for Diageo, after accounting for tax and transaction costs, are projected to reach $2.3 billion. This implies an enterprise value of $4.8 billion for 100 percent of EABL, reflecting a multiple of 17 times adjusted EBITDA. The deal is also expected to contribute to a reduction in Diageo’s leverage by approximately 0.25x, supporting its financial restructuring goals.

Asahi Group Holdings commented on the acquisition, stating it marks the first time a major Japanese brewing business has made an investment of this magnitude in an African alcohol beverage company. They affirmed their commitment to being a “strong, responsible, and experienced steward for the next phase of growth for EABL,” signaling a long-term strategic interest in the continent’s burgeoning consumer market.

Adriano Joshua, a Kenya-based financial economist, offered insights via LinkedIn, suggesting Diageo’s primary motivation is deleveraging and pivoting towards a capital-light model in East Africa. By divesting physical assets and distribution infrastructure while retaining long-term licensing agreements, Diageo can continue to earn high-margin royalty income from iconic brands such as Guinness, Smirnoff, and Captain Morgan, without incurring the operational risks or balance-sheet burdens associated with direct ownership.

Conversely, the transaction signifies a major capital deployment into Africa for Asahi, establishing a significant foothold in a rapidly expanding market. Subject to necessary regulatory approvals, the completion of this extensive deal is anticipated in the second half of 2026. EABL will maintain its listing on the Nairobi Securities Exchange, as well as on the stock exchanges in Uganda and Tanzania, ensuring continued market presence.

Founded over a century ago, EABL operates extensively across Kenya, Uganda, and Tanzania. Under Diageo’s stewardship, the brewer demonstrated a robust growth trajectory, underpinned by modern production facilities, an experienced management team, and deep-rooted relationships within its core markets, setting a strong foundation for its new ownership under Asahi.

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Keywords: East African Breweries, EABL shares, Diageo, Asahi Group Holdings, Africa alcohol market, Nairobi Securities Exchange, brewing industry, corporate divestment