Diageo Sells Seychelles Breweries Stake for $80M in Africa Retreat
TLDR
- Diageo Plc is divesting its 54.4% stake in Seychelles Breweries Ltd. to Mauritius-based Phoenix Beverages Ltd. for around $80 million
- The move advances Diageo’s “asset-light” strategy aimed at reducing volatility and optimizing returns on the continent
- The transaction follows Diageo’s sales of stakes in Guinness Ghana to Castel Group and Guinness Nigeria to Singapore-based Tolaram
Diageo Plc is divesting its 54.4% stake in Seychelles Breweries Ltd. to Mauritius-based Phoenix Beverages Ltd. for around $80 million, marking its third major African exit in less than a year. The move advances Diageo’s “asset-light” strategy aimed at reducing volatility and optimizing returns on the continent.
PhoenixBev, the largest brewer in Mauritius, is expanding its footprint across Indian Ocean markets as part of a broader regional growth push. The company already brews Diageo brands such as Guinness and Smirnoff Ice locally. The Seychelles deal is expected to add 1.7 billion rupees ($37.1 million) in revenue and 231.8 million rupees in net profit, according to Axys Stockbroking.
The transaction follows Diageo’s sales of stakes in Guinness Ghana to Castel Group and Guinness Nigeria to Singapore-based Tolaram. Previous exits include Guinness Cameroon and Meta Abo Brewery in Ethiopia. Seychelles Breweries will remain listed on the Seychelles Stock Exchange. The deal is expected to close in June.
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Key Takeaways
Diageo’s exit from Seychelles Breweries is the latest in a string of African divestitures as the global beverage giant shifts to an asset-light model. The company is reducing direct ownership in African markets, focusing instead on partnerships and licensing agreements to limit exposure to local market volatility. PhoenixBev’s acquisition aligns with its parent IBL Group’s expansion strategy across Africa and strengthens its position in Indian Ocean economies. The move boosts PhoenixBev’s scale and profitability while deepening its relationship with Diageo. As Diageo’s African footprint consolidates around East African Breweries Plc and select licensing deals, regional players like PhoenixBev are capitalizing on opportunities to grow via acquisition. The transaction also signals growing investor confidence in niche African beverage markets, especially when driven by demand for international brands and rising middle-class consumption. Strategic exits by multinationals may continue to open the door for regional champions to build scaled, diversified portfolios.
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