East African Breweries PLC (EABL) has welcomed a fresh High Court ruling declining to grant conservatory orders sought by JILK Construction Company Limited and others who were attempting to halt the proposed sale of Diageo’s controlling stake in the company to Japanese conglomerate Asahi Group Holdings.
The ruling marks the latest in a series of legal battles that have trailed the multi-billion-shilling deal since it was announced in December 2025. Earlier this year, Kenyan distributor Bia Tosha filed a petition at the High Court seeking to halt the transaction, arguing that Diageo’s planned exit from Kenya could weaken its ongoing legal dispute with the multinational, which has been unresolved for almost a decade. The High Court dismissed Bia Tosha’s application.
Diageo agreed to sell its 65% shareholding in EABL to Asahi Group Holdings, with estimated net proceeds after tax and transaction costs of approximately $2.3 billion (KES 300 billion), equating to a multiple of 17x adjusted EBITDA.
Court Reiterates Broader Economic Significance of the Transaction
EABL noted in its statement that the Court reiterated “the significant public interest and public finance implications of the transaction,” reinforcing the company’s position that this deal carries weight far beyond the corporate boardroom. The deal is expected to generate about KES 42 billion in capital gains tax for the Treasury, giving the Kenya Revenue Authority one of its biggest single transaction tax windfalls.
“The transaction has received full and unconditional approvals in Uganda and Tanzania. The outstanding regulatory approval remains merger clearance from the Competition Authority of Kenya (CAK),” Said EABL in a statement.
EABL Reaffirms Commitment to Shareholder Returns Amid Ownership Transition
The regional brewer reaffirmed its commitment to deliver strong shareholder returns, while supporting people and sectors connected to its business across East Africa. In the six months ended December 31, 2025, EABL reported an after-tax profit of KES 11.2 billion, up 37.4% from KES 8.1 billion recorded in a similar period.
The profit growth was mainly supported by strong revenue expansion, operational efficiencies, and reduced finance costs. The company’s Board of Directors declared an interim dividend of KES 4.00 per share, up 60% from KES 2.50 in a similar period last year and the highest interim dividend in the company’s history.
