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.