A UK based majority owner of Guiness Nigeria, Diageo Plc, has announced their exit from the Nigerian market through their recent sales of its 58.02% stake to Tolaram Group, a Singapore consumer giant.
Tolaram reportedly paid ₦81.60 for those shares, implying around a 60% premium on Guinness Nigeria’s Monday closing price of ₦50.
Diageo will retain ownership of the Guinness brand, it will be licenced to Guinness Nigeria, now majorly owned by Tolaram for the long term.
Having acquired majority shares, Tolaram will launch a mandatory takeover offer per rules from the Nigerian Exchange. Guinness Nigeria will however remain a publicly listed company.
“Under the terms of the agreement signed today, 11 June 2024…Tolaram will enter into a long-term licence and royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brand,” a statement from Guinness Nigeria said.
The transaction is expected to be concluded in 2025 pending the necessary regulatory approvals.
