By Ian Walker

LONDON--Spirits maker Diageo PLC (DGE.LN) Tuesday announced a restructuring of its South African and Namibian operations with its joint-venture partners Heineken Holding N.V. (HEIO.AE) and Ohlthaver & List.

Under the deal Diageo, maker of Johnnie Walker, J B, Buchanan's, and Windsor whiskies and Smirnoff, will sell its 42.25% equity stake in DHN Drinks (Proprietary) Ltd. and associated loan, and its 15% equity stake in Namibia Breweries Ltd. to Heineken.

It will also sell its 25% stake in the Sedibeng brewery in Gauteng, South Africa, to Namibia Breweries and transfer the loan to Heineken.

Diageo will get 128 million pounds ($196.6 million) in cash on completion of the deal, which is expected by the end of this year, it said.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

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