The foreign majority shareholder in Guinness Nigeria Plc, Diageo, has agreed to sell its controlling equity stake of 58.02 per cent to Tolaram, a Singaporean multinational.
The transaction is expected to close in fiscal 2025 pending regulatory approvals, according to an announcement made by Guinness via a press release on the official NGX website on Tuesday.
Diageo’s exit adds to the list of multinational corporations departing the country due to challenging economic conditions.
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.
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.
“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 stewardship of Tolaram,” Guinness Nigeria stated.
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 agreement, following the completion of the transaction, Guinness Nigeria will remain listed on the NGX. However, recent acquisitions have led to the full takeover and delisting of companies.
Chairman, of 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,” he said.
Similarly, the Managing Director, of Guinness Nigeria, Adebayo Alli, described the announcement as an exciting moment for Guinness Nigeria, 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 build an enduring and sustainable business,” Alli said.
Managing Director, of Tolaram Africa, Haresh Aswani said the group was thrilled to welcome Guinness Nigeria, a company with such a rich legacy and strong consumer loyalty.
“This strategic move will expand our significant footprint 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 nation,” Aswani said.
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