News Desk
Diageo Plc, the UK-based majority owner of Guinness Nigeria, has sold its 58.02% stake to Tolaram Group, the consumer food giant. Tolaram purchased the shares at ₦81.60 each, representing an additional price of approximately 60% over Guinness Nigeria’s closing price of ₦50 on Monday.
Although Diageo Plc retains ownership of the Guinness brand, it will be licensed to Guinness Nigeria, now majority-owned by Tolaram Group, for the long term.
Following the acquisition of the shares, Toloram is mandated to launch a takeover offer by Nigerian exchange rules. However, Guinness Nigeria will remain a publicly listed company.
Guinness Nigeria’s statement indicates that under the terms of the agreement signed on June 11, 2024, Tolaram will enter into long-term license and royalty agreements for the continued production of the Guinness brand, as well as locally manufactured Diageo ready-to-drink and mainstream spirits brands.
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The transaction is set to be finalized in 2025 pending the necessary regulatory approvals.
Sajen Aswani, Tolaram’s chief executive, expressed the company’s commitment to building on its strong presence and heritage in Nigeria, stating, “Our partnership with Diageo to jointly grow Guinness Nigeria underscores our commitment to build on our strong presence and heritage in Nigeria, cultivated over decades of dedication and unwavering confidence in the future of Africa. We take a long-term view on all our investments and this partnership reflects our optimism on the exciting opportunities that lie ahead across the continent.”
Debra Crew, Diageo CEO, also commented, “I’m excited to announce our new partnership with Tolaram. Guinness has been Nigeria’s favorite beer for nearly 75 years. Tolaram shares this passion for Guinness and Nigeria, making them the perfect partners as we continue to grow our business and seek to delight even more consumers in the country.”
Techrectory with Agency Report.
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