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The foreign majority shareholder in Guinness Nigeria Plc, Diageo has resolved to leave Nigeria and opted to sell its 58.02 per cent controlling stake to a multinational company based in Singapore, Tolaram.
Under the terms of the deal, Tolaram will acquire Diageo’s 58.02 per cent shareholding in Guinness Nigeria and enter into long-term licence 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 controlling stake in Guinness Nigeria.
In a regulatory filing with the Nigerian Exchange on Tuesday, the board of Guinness Nigeria stated that the transaction is expected to be completed in 2025, pending necessary regulatory approvals in Nigeria.
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 consumer multinational companies.
Diageo and Tolaram will collaborate to drive the brand and marketing strategy for Guinness in Nigeria, ensuring long-term growth.
Guinness Nigeria will remain listed on the Nigerian Exchange (NGX) after the transaction, although recent similar acquisitions have sometimes led to full takeovers and delistings of companies.
Chairman of Guinness Nigeria, Omobola Johnson, said the acquisition represents a significant opportunity for the company’s growth.
At the close of trading on Tuesday, Guinness Nigeria Plc gained N4.24 to close at N54.80 from N50.55 when it commenced trading for the day.
The volume and value of its transactions stood at 178,098 shares valued at N9.80 million exchanged in 31 deals.