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 โฆ81.60 for those shares, implying around a 60% premium on Guinness Nigeriaโs Monday closing price of โฆ50.
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.
โUnder the terms of the agreement signed today, 11 June 2024โฆTolaram 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,โ a statement from Guinness Nigeria said.
The transaction is expected to be concluded in 2025 pending the necessary regulatory approvals.
