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Diageo, the major foreign shareholder in Guinness Nigeria Plc, has decided to sell its 58.02% controlling stake to Tolaram, a Singapore-based multinational company.
According to the agreement signed on Tuesday, June 11, Tolaram will acquire Diageo’s 58.02% stake in Guinness Nigeria and will also enter into long-term licensing and royalty agreements to continue producing the Guinness brand and Diageo’s locally made ready-to-drink and mainstream spirits.
With this acquisition, Tolaram will initiate a mandatory tender offer to purchase shares from minority shareholders, potentially increasing its controlling stake in the company.
In a regulatory submission to the Nigerian Exchange (NGX), the board of Guinness Nigeria announced that the transaction is anticipated to be finalized 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 stewardship of Tolaram,” Guinness Nigeria stated.
With a 50-year presence in Africa, Tolaram has become one of the largest consumer packaged goods companies on the continent, forming joint ventures with several major multinational consumer companies.
Guinness Nigeria stated that, in collaboration with Tolaram, Diageo will continue to manage the brand and marketing strategies for the brand in Nigeria, utilising Diageo's exceptional skills in brand building and innovation to ensure long-term growth for Guinness in the country.
According to the plan, once the transaction is completed, Guinness Nigeria will remain listed on the NGX. However, recent acquisitions have resulted in companies being fully taken over and delisted.
Omobola Johnson, Chairman of Guinness Nigeria, remarked that the acquisition announcement presents 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.