The High Court on Friday heard arguments from East African Breweries PLC and Kenya Breweries Limited opposing an application seeking to suspend a Sh300 billion ($2.3 billion) share transaction linked to a dispute involving beer distribution routes and an alleged goodwill claim.

The application was filed by local distributor Bia Tosha (BT), which is seeking interim orders to stop the transfer of EABL shares pending the determination of the case.

Lawyers representing EABL and KBL told the court that the issues raised by the petitioner were unrelated to the proposed share transaction and argued that the orders sought could have wider commercial implications.

“There is no legal or factual connection between the distribution dispute and the transfer of EABL shares,” counsel for the respondents submitted in court.

The respondents argued that the dispute before the court concerns local distribution arrangements and an alleged Sh38 million goodwill claim, while the transaction in question involves a separate corporate share transfer process.

The companies further told the court that a similar application had previously been dismissed by the High Court on April 9.

According to the respondents, the petitioner later moved to the Court of Appeal before filing another application before the High Court seeking interim relief.

Lawyers for EABL and KBL also submitted that the transaction involves substantial investor interests and could have broader implications for shareholders and the market if delayed.

“It is concerning that a transaction of this scale could be affected before the main dispute is heard and determined,” one of the lawyers submitted.

The respondents further told the court that they are financially capable of meeting any obligations that may arise if the petitioner succeeds in the substantive claim.

“We are established corporate entities and capable of satisfying any lawful award that may ultimately be made by the court,” counsel submitted.

The companies urged the court to decline the application and allow the share transaction to proceed pending the hearing and determination of the main dispute.

The matter is scheduled for ruling on May 28.

The decision is expected to be closely watched by investors, market analysts and participants in the wider business community.