Diageo will sell 58.02% of Guinness to the Tolaram Group

Diageo, the foreign majority shareholder of Guinness Nigeria Plc, has agreed to sell its 58.02 percent controlling stake to Tolaram, a Singapore-based multinational company.

The agreement was signed on Tuesday.

Under the terms of the agreement, Tolaram will acquire Diageo’s 58.02 percent stake in Guinness Nigeria and enter into long-term licensing and royalty agreements to continue producing the Guinness brand and other Diageo beverages locally.

Tolaram will also make a mandatory tender offer to minority shareholders, potentially increasing its majority stake in Guinness Nigeria.

In a regulatory filing with the Nigerian Stock Exchange on Tuesday, Guinness Nigeria’s board stated that the transaction is expected to be completed in 2025, pending necessary regulatory approvals in Nigeria.

“Diageo remains deeply committed to Nigeria and will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term, enabling the next phase of growth and development of Guinness Nigeria under the leadership of Tolaram,” the company said.

Tolaram has a significant presence in Africa as one of the largest consumer packaged goods companies on the continent and has partnerships with several leading multinational consumer companies.

Diageo and Tolaram will collaborate to drive Guinness’ brand and marketing strategy in Nigeria, ensuring long-term growth.

Guinness Nigeria will remain listed on the Nigerian Stock Exchange (NGX) following the transaction, although recent similar acquisitions have sometimes led to outright takeovers and delisting of companies.

Guinness Nigeria President Omobola Johnson said the acquisition represents a significant opportunity for the company’s growth.

“This partnership brings together Tolaram’s deep expertise in manufacturing and distribution and Diageo’s exceptional capabilities in brand building and innovation. I believe this is a winning combination that leaves Guinness Nigeria extremely well positioned to drive further growth in this market,” Johnson said.

The CEO of Guinness Nigeria, Adebayo Alli, described the announcement as an exciting moment for the company, its employees and customers.

“I look forward to working alongside Tolaram, which is one of the largest and most respected consumer goods companies in Africa, and I am pleased to note Tolaram’s alignment with Guinness Nigeria’s values ​​and its strong commitment to building a long-lasting and sustainable business” , There said.

Tolaram Africa CEO Haresh Aswani expressed his excitement about the acquisition. “This strategic move will expand our significant presence in the Nigerian market and presents an opportunity to leverage our combined strengths to foster innovation and deliver immense value to our customers and shareholders across the country,” Aswani said.

At the close of trading on Tuesday, Guinness Nigeria Plc gained 4.24 naira to close at 54.80 naira from 50.55 naira when trading began the day.

The volume and value of its transactions amounted to 178,098 shares valued at N9.80 million exchanged in 31 transactions.

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