NAIROBI, Kenya, June 17 – The High Court has declined to issue conservatory orders that sought to stop the sale of a majority stake in East African Breweries Plc by Diageo to Asahi Group Holdings.
The application had been filed by JILK Construction Company Limited and other parties seeking to block the transaction pending the settlement of a Sh2.45 billion compensation claim linked to the construction of Kenya Breweries Limited’s Kisumu brewery.
In a statement following the ruling, EABL welcomed the court’s decision, saying it had consistently respected the judicial process and would continue defending the matter through lawful channels.
“As a responsible listed company, EABL has at all times respected the court process. We have defended, and will continue to defend, these matters through lawful channels,” the brewer said.
The company added that the court had recognised the significant public interest and economic implications of the transaction, noting EABL’s role as a major taxpayer, employer and contributor to the regional economy.
EABL further stated that the transaction has already received full and unconditional regulatory approvals in Uganda and Tanzania, with merger clearance from the Competition Authority of Kenya remaining the final outstanding approval.
“In light of today’s ruling, it is clear that unrelated historical disputes should not be used to delay or derail a transaction of significant public and economic interest,” the company said.
The proposed deal, announced last year, will see Asahi acquire Diageo’s 65 percent stake in EABL and its interest in UDV Kenya for approximately Sh296.5 billion.
The acquisition is expected to give the Japanese brewer a significant foothold in the East African alcoholic beverages market.
EABL said it remains focused on delivering long-term value to shareholders and supporting businesses, suppliers and communities linked to its operations across the region.
