A Kenyan beer distribution firm has filed a case at Kenya’s high court seeking to block Diageo’s $2.3bn (R37.8bn) sale of its local subsidiary EABL to Japan’s Asahi Holdings over pending litigation, a lawyer for the challenger said on Wednesday.
Diageo, the world’s biggest spirits group, said last month it had agreed on a deal with the Japanese brewer for a sale of its 65% stake in EABL as it responds to US tariffs and shifting consumer patterns.
However, the deal faces a challenge by Kenyan distributor Bia Tosha, which has asked the court to stop it until its litigation against Diageo and EABL, over a competition dispute, is determined and settled.
Kenya’s high court has certified the case as urgent and has set a hearing date for Friday, when it will give directions, Kenneth Kiplagat, Bia Tosha’s lawyer, told Reuters.
London-listed Diageo did not immediately respond to a request for comment.
EABL, which is listed on the Nairobi bourse, was not immediately available for comment.
Diageo’s shares slipped 1.6% while EABL was 0.5% lower.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.