Diageo Set To Sell Guinness Nigeria To Tolaram
The foreign majority shareholder in Guinness Nigeria Plc, Diageo, has agreed to sell its controlling equity stake of 58.02 per cent to a Singaporean multinational, Tolaram.
According to an agreement signed on Tuesday, Tolaram will take over Diageo’s 58.02% ownership in Guinness Nigeria and establish long-term licensing and royalty contracts to maintain production of the Guinness brand and Diageo’s locally produced ready-to-drink and mainstream spirits brands.
The acquisition of 58.02% by Tolaram will trigger a mandatory tender offer aimed at acquiring shares from minority shareholders, which could boost its controlling stake.
In a regulatory filing with the Nigerian Exchange (NGX), the board of Guinness Nigeria stated that the transaction is anticipated to be completed in 2025, pending the 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 five-decade presence in Africa, Tolaram is one of the largest consumer packaged goods companies on the continent, having established joint venture partnerships with several leading multinational consumer companies.
Guinness Nigeria highlighted that in collaboration with Tolaram, Diageo will maintain its role in steering the brand and marketing strategy for Guinness in Nigeria, leveraging Diageo’s exceptional expertise in brand building and innovation to ensure sustained long-term growth for the brand in the country.
While Guinness Nigeria will continue to be listed on the NGX after the transaction, recent trends show that acquisitions often end in complete takeovers and delistings.
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.
The Managing Director of Guinness Nigeria, Adebayo Alli, expressed excitement over the new partnership with Tolaram, highlighting the alignment of values and the commitment to building a sustainable business.
Meanwhile, the Managing Director of Tolaram Africa, Haresh Aswani, welcomed Guinness Nigeria to their group, noting the strategic move would enhance their presence in the Nigerian market and leverage combined strengths to drive innovation and value for customers and shareholders.
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