Diageo, the foreign majority shareholder in Guinness Nigeria Plc, has agreed to sell its 58.02 per cent controlling stake to Tolaram, a multinational company based in Singapore.
Punch Newspaper reports that the agreement was signed on Tuesday.
Under the terms of the deal, Tolaram will acquire Diageo’s 58.02 per cent shareholding in Guinness Nigeria and enter into long-term licence and royalty agreements to continue producing the Guinness brand and other Diageo beverages locally.
The transaction, which will also see the Tolaram launch a mandatory takeover of minority shareholders upon obtaining all the requisite regulatory approvals, would result in eventual delisting of Guinness Nigeria from the stock market.
In a regulatory filing with the Nigerian Exchange on Tuesday, the board of Guinness Nigeria stated that the transaction is expected to be completed 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,” the company stated.
Tolaram has a significant presence in Africa as one of the largest consumer packaged goods companies on the continent and has partnerships with several leading consumer multinational companies.
Chairman of Guinness Nigeria, Omobola Johnson, said the acquisition represents a significant opportunity for the company’s growth.
“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 of Guinness Nigeria, Adebayo Alli, described the announcement as an exciting moment for the company, 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 building an enduring and sustainable business,” Alli said.
Managing Director of Tolaram Africa, Haresh Aswani, expressed excitement about the acquisition. “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.