Kenyan court postpones hearing on Diageo's $2.3 billion EABL sale

Kenya's High Court moved to Jan. 20 the hearing that seeks to stop Diageo's $2.3 billion sale of its 65% stake in East African Breweries to Asahi, and the judge allowed parties to take preliminary steps such as seeking regulatory approvals so long as the transaction is not finalised by that date.

Kenya's High Court on Friday postponed until January 20 the hearing of a case that aims to block Diageo's $2.3 billion sale of its majority stake in East African Breweries Limited to Japan's Asahi. The sale, announced last month, involves Diageo selling its 65% holding in EABL. The lawsuit was filed by Kenyan distributor Bia Tosha and relates to litigation dating back to 2016. EABL has said the court case has no legal or factual link to the transaction. Key facts: - The court moved the hearing to January 20, when it will give further directions. - Judge Bahati Mwamuye said parties may take preliminary steps, such as seeking regulatory approvals, provided the transaction is not finalised by January 20. - Diageo agreed last month to sell its 65% stake in EABL to Asahi in a deal reported at $2.3 billion. - The case was brought by Kenyan beer distributor Bia Tosha and refers to pending litigation from 2016. - Deal parties have said they expect completion in the second half of this year. Summary: The court delay pauses a legal challenge to the sale while allowing preparatory regulatory work to proceed under the judge's conditions. The next scheduled court direction is on January 20, and the transaction's completion is reported to be expected later in the year. Undetermined at this time.