Kenyan Court Postpones Bid to Halt Diageo’s $2.3 Billion EABL Sale to Asahi
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Kenya’s High Court postponed to Jan. 20 a case seeking to block Diageo’s $2.3 billion sale of its local subsidiary, East African Breweries Limited (EABL), to Japan’s Asahi Holdings. The deal, announced last month, involves Diageo selling its 65% stake in EABL as it disposes of non-core assets to reduce debt and cushion the impact of U.S. tariffs and weaker sales linked to shifting consumer patterns.
The application was filed this week by Kenyan beer distributor Bia Tosha, which is attempting to stop the transaction on the basis of pending litigation dating back to 2016. The court action weighed on Diageo’s shares, while EABL has argued the distributor’s dispute has no legal or factual connection to the planned share sale.
Judge Bahati Mwamuye said the parties could proceed with preliminary steps, including seeking regulatory approvals, provided the transaction is not finalised before the next hearing date. He said the court will provide further directions on Jan. 20.
Diageo and its counterparties have said they expect the transaction to complete in the second half of this year, subject to the required processes. EABL said it welcomed the court decision that allows the regulatory phases of the transaction to continue.
