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<\/p>\nKenya\u2019s high court has allowed Diageo to continue preparations to sell its controlling stake in East African Breweries despite an ongoing trade dispute. The transaction, involving Japan\u2019s Asahi, cannot be completed until a further hearing later this month.<\/p>\n
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Kenya\u2019s High Court has ruled that preparations for Diageo\u2019s sale of its controlling 65% stake in East African Breweries can proceed despite an action designed to prevent it from being lodged while a trade dispute is heard.<\/p>\n
Legal challenge<\/p>\n
Kenyan beer distributor Bia Tosha filed the case to try to block the deal<\/a> pending resolution of litigation dating back to 2016, in which it claims that Diageo and EABL unfairly ended its contract.<\/p>\n The court moved the hearing of the case until January 20 but said Diageo and Asahi could continue preparations for the sale, such as seeking regulatory approvals, so long as it was not concluded before the next hearing.<\/p>\n Sale timeline and rationale<\/p>\n Both Diageo<\/a> and Asahi have said they expect the transaction to be finalised in the second half of this year. It is part of Diageo\u2019s programme of debt reduction by selling non-core and underperforming assets.<\/p>\n Company reaction<\/p>\n \u201cWe welcome the court\u2019s decision to allow the regulatory phases of this transaction to continue,\u201d EABL said in a statement. Previously, it has been said that Bia Tosha\u2019s case has no legal or factual link to the transaction.<\/p>\n Related news<\/p>\n \n \n
\n Diageo’s EABL deal faces legal challenge in Kenya
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\n Diageo sells East African Breweries stake to Asahi for US$2.3bn
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