Diageo projects big benefit from sale of Red Stripe

Diageo has explained that its sale of Red Stripe to Heineken will help it to focus its business growth on the African market.
  
Heineken announced on Wednesday that it has bought Red Stripe and a Malaysian brewery from Diageo for US$781 million. Red Stripe alone cost Heineken US$421 million.
   
As part of the deal, Diageo will acquire Heineken's 20 per cent stake in Guinness Ghana Breweries.
    
Diageo forecast the deal will make it a profit of approximately US$675 million, after tax, and has announced that it will use the money to reduce its debts.
   
Diageo has been trimming its assets to focus on core brands, in an attempt to reverse three years of falling sales.
   
In July, the group sold the Gleneagles Hotel and Golf Resort in Scotland to hotel developer Ennismore, and cancelled a joint venture with Heineken in South Africa, three years ahead of schedule.