Nairobi, Kenya- East African Breweries Limited (EABL) shares surged sharply at the Nairobi Securities Exchange on Thursday morning, rising 17.06pc to trade at Sh295 per share by 11:30am, as investors reacted to news that Japanese conglomerate Asahi Group Holdings is set to acquire Diageo’s stake in the brewer.
The rally made EABL the top gainer at the NSE during the mid-morning session, according to market highlights, outperforming counters such as Olympia Capital, Liberty Kenya Holdings and NSE Plc.
The surge came amid heavy trading activity, reflecting heightened investor interest following confirmation of the landmark deal.
The price jump follows Diageo’s announcement that it has agreed to sell its 65pc stake in EABL, alongside its shareholding in Kenyan spirits manufacturer UDVK, to Asahi in a transaction valued at about US$2.3 billion net of taxes and transaction costs.
The deal implies an enterprise value of roughly US$4.8 billion for EABL, based on a multiple of 17 times adjusted EBITDA.
Market analysts say the sharp rise in EABL’s share price reflects investors quickly repricing the stock to factor in the implied valuation of the business.
At current levels, traders estimate that the deal effectively translates to a valuation of about Sh590.1 per share, more than double where the stock was trading before the announcement.
Diageo said the sale is part of its strategy to divest non-core assets, strengthen its balance sheet and reduce leverage by around 0.25x.
Interim CEO Nik Jhangiani noted that the agreement reflects Diageo’s pride in EABL’s more than 100-year heritage and its dominant position across Kenya, Uganda and Tanzania.
Asahi has indicated it will retain EABL’s flagship local brands, including Tusker and Kenya Cane, while gradually introducing its global portfolio into the East African market.
The transaction also includes long-term licensing and transitional service agreements, allowing EABL to continue producing Diageo spirits such as Guinness, Smirnoff, Captain Morgan and ready-to-drink brands like Smirnoff Ice and Orijin.
Asahi CEO Atsushi Katsuki described EABL as a high-quality business with strong market share, modern facilities and an experienced management team, saying the group was excited to support its next phase of growth.
The deal, which is subject to regulatory approvals, is expected to close in the second half of 2026 and marks the first time a major Japanese brewer has made an investment of this scale in Africa’s alcohol beverage sector.
