Diageo Said to Tap BofA, Goldman for East African Arm Review (1)

Diageo Plc has picked Bank of America Corp. and Goldman Sachs Group Inc. for a strategic review of East African Breweries Ltd., people familiar with the matter said, as the distiller looks to an asset light model to free up capital for reviving growth.

Options for Nairobi-listed EABL may include a sale of just the beer business, which could be valued at about $2 billion in a deal, the people said. EABL has a market value of about $1.2 billion and Diageo is its largest shareholder with a 65% stake.

Other breweries such as Heineken NV, Castel Group ...