Diageo Plc, the UK-based majority owner of Guinness Nigeria, looks to be exiting Nigeria after selling its 58.02% stake to Tolaram Group, the consumer food giant. Tolaram paid ₦81.60 for those shares, implying around a 60% premium on Guinness Nigeria’s Monday closing price of ₦50.
Diageo will retain ownership of the Guinness brand, it will be licenced to Guinness Nigeria, now majorly owned by Tolaram for the long term.
Having acquired majority shares, Tolaram will launch a mandatory takeover offer per rules from the Nigerian Exchange. Guinness Nigeria will however remain a publicly listed company.
“Under the terms of the agreement signed today, 11 June 2024…Tolaram will enter into a long-term licence and royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brand,” a statement from Guinness Nigeria said.
The transaction is expected to be concluded in 2025 pending the necessary regulatory approvals.
“Our partnership with Diageo to jointly grow Guinness Nigeria underscores our commitment to build on our strong presence and heritage in Nigeria, cultivated over decades of dedication and unwavering confidence in the future of Africa,” said Sajen Aswani Tolaram’s chief executive.
“We take a long-term view on all our investments and this partnership reflects our optimism on the exciting opportunities that lie ahead across the continent.”
“I’m excited to announce our new partnership with Tolaram. Guinness has been Nigeria’s favourite beer for nearly 75 years. Tolaram share this passion for Guinness and for Nigeria, making them the perfect partners as we continue to grow our business and seek to delight even more consumers in the country,” commented Debra Crew, Diageo CEO.
*This is a developing story
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