The Nairobi Securities Exchange (NSE) temporarily halted trading in East African Breweries Plc (EABL) shares after the company released a cautionary announcement during trading hours.
This is a one way of ensuring orderly trading and equal access to material information.
The halt came as global beverage giant Diageo confirmed it had entered into an agreement to sell its controlling stake in EABL to Japan’s Asahi Group Holdings.
Asahi is one of Asia’s largest brewing companies.
Trading is expected to resume in the next session once the market has fully absorbed the announcement.
“The halt follows the release of a cautionary announcement by the issuer during trading hours, coupled with prior circulation of market-sensitive information. The measure has been taken to promote orderly trading and ensure equitable access to information among all market participants,” said NSE in a statement.
Under the agreement, Diageo will sell its 65 percent shareholding in EABL to Asahi as part of a broader exit from selected non-core assets.
The transaction implies an enterprise value of approximately US$4.8 billion (Ksh.618 billion) for EABL and is expected to generate net proceeds of about US$2.3 billion (Ksh.296 billion) for Diageo after tax and transaction costs.
Diageo said the disposal aligns with its strategy to strengthen its balance sheet, reduce leverage, and focus capital on priority markets and brands.
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The deal also includes Diageo’s exit from the Kenyan spirits business through the sale of its stake in Diageo Kenya Limited and its interests in UDVK. Despite the change in ownership, Diageo will retain a strong commercial presence in the region through long-term licensing and distribution agreements.
“This acquisition represents the first major Japanese brewing business to make an investment of this size in an African alcohol beverage business, and reflects our confidence in EABL’s strong brands, market leadership and long-term growth potential across East Africa,” said Diageao.
EABL will continue to produce and distribute key brands such as Guinness under licence, alongside selected Diageo international spirits and ready-to-drink products.
Importantly for local markets, iconic brands such as Tusker and Kenya Cane will remain under EABL ownership.
From the Asian market, the acquisition means first of its first-of-its-kind major investment in Africa’s alcohol beverage sector.
The Japanese brewer described EABL as a high-quality business with strong market positions in Kenya, Uganda, and Tanzania, a well-established brand portfolio, and modern production facilities.
Asahi expects the acquisition to support the next phase of growth for EABL while preserving local brands and leveraging global expertise.
Subject to regulatory approvals, completion is expected in the second half of 2026, setting the stage for a major shift in ownership of East Africa’s largest brewer.
