Shares in Diageo, which is the maker of Johnnie Walker whisky and Captain Morgan rum, lost more than 2% on news of the case, while EABL was 0.5% lower. Diageo, the world’s biggest spirits group, said last month it had agreed a deal with the Japanese brewer for the sale of its 65% stake in East African Breweries Limited, as it looks to sell assets and reduce debt to offset the impact of United States tariffs, sales declines and shifting consumer patterns.
The deal faces a challenge by Kenyan distributor Bia Tosha, which has asked the court to stop it until its litigation against Diageo, EABL and its Kenyan subsidiary KBL, 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.
–Reuters–
