East African Breweries (EABL) has won a major battle after the High Court stopped further attempts by JILK Construction Company Ltd to stop the sale of Sh 340billion Diageo shares to Japan’s Asahi Group Holdings.
Justice Gregory Mutai of the Milimani Constitutional and Human Right Division dismissed the application by JILK Construction Company saying it had no bearing on the transaction for sale of shares.
“I share the same view as my brother Judge Bahati Mwamuye in the Bia Tosah matter, that there no nexus has been shown between the impugned transaction and the petition now before court,” the Judge ruled.
EABL welcomed the order saying as a responsible listed company, have at all times respected the court and will continue to defend the matters through lawful channels.
“EABL is encouraged that the Court has reterated the significant public interest and public finance implications of the transaction, as EABL remains a major contributor to Kenya’s economy and a leading taxpayer and employer,” said EABL in statement.
EABL noted that the transaction had received full and unconditional approvals in Uganda and Tanzania and the outstanding regulatory approval remains merger clearance from the Competition Authority of Kenya.
It noted that in light of today’s ruling, it was clear that unrelated historical disputes should not be used to derail or delay a transaction of significant public and economic interest.
EABL went on to state that it remains focused on delivering long term value and supporting the many people and sectors connected to its business across East Africa.
JILK’s case arises from a 2017 contract to build Kisumu brewery that was terminated.
