Diageo, the foreign majority shareholder in Guinness Nigeria Plc, has agreed to sell its controlling equity stake of 58.02 per cent to Tolaram, a Singaporean multinational.
Under the terms of an agreement signed on Tuesday, Tolaram will acquire Diageo’s 58.02 per cent shareholding in Guinness Nigeria and enter into long-term license and royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits
brands.
By acquiring 58.02 per cent, Tolaram will also undertake a mandatory tender offer to seek to acquire shares held by minority shareholders, in a transaction that could increase the new core investor’s controlling stake.
Guinness Nigeria noted that in partnership with Tolaram, Diageo will continue to drive the brand and marketing strategy for Guinness in Nigeria, to ensure Diageo’s exceptional capabilities in brand building and innovation
continue to drive long-term growth for Guinness in Nigeria.
According to the plan, following completion of the transaction, Guinness Nigeria will remain listed on the NGX.
Chairman, Guinness Nigeria, Omobola Johnson said the acquisition announcement represents a significant opportunity for the next phase of growth for Guinness Nigeria.
“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 which leaves Guinness Nigeria extremely well placed to drive
further growth in this market,” Johnson said.
Managing Director, Guinness Nigeria, Adebayo Alli, described the announcement as an exciting moment for Guinness Nigeria, its employees and customers.