Kenyan court postpones case seeking to halt Diageo's $2.3 billion sale of EABL
Beer bottles pass through a conveyor belt along a production line at the East African Breweries' microbrewery as the company released its half-year results in Ruaraka, Nairobi, Kenya, January 26, 2024. PHOTO/REUTERS
Kenyan beer distributor Bia Tosha filed the case to try to block the deal this week over pending litigation dating back to 2016, sending Diageo's shares lower
Nairobi.Kenya's High Court on Friday moved to January 20 the hearing of a case seeking to stop Diageo's $2.3 billion sale of its local subsidiary EABL to Japan's Asahi Holdings (2502.T), opens new tab.
Diageo (DGE.L), opens new tab, said last month it had agreed to sell its 65% stake in East African Breweries Limited (EABL.NR), opens new tab to the Japanese brewer.
Diageo is selling non-core assets to reduce debt, as well as offset the impact of US tariffs and a fall in sales driven by shifting consumer patterns.
Kenyan beer distributor Bia Tosha filed the case to try to block the deal this week over pending litigation dating back to 2016, sending Diageo's shares lower. EABL has said the case has no legal or factual link to the transaction.
Bahati Mwamuye, a judge at the court, said the deal parties could take preliminary steps such as seeking regulatory approvals, as long as the transaction was not finalised by January 20, when the court will give further directions.
Deal parties have said they expect completion in the second half of this year.
