Exit? Diageo sells stake in Guinness Nigeria to Tolaram for £103bn

Diageo Plc, the UK-based majority owner of Guinness Nigeria, appears to be exiting Nigeria after selling its 58.02% stake to Tolaram Group, the consumer food giant. Tolaram paid £81.60 for those shares, implying a premium of around 60% to Guinness Nigeria’s Monday closing price of £50.

Diageo will retain ownership of the Guinness brand and will be licensed to Guinness Nigeria, now majority owned by Tolaram on a long-term basis.

Having acquired majority shares, Tolaram will launch a mandatory takeover bid under the rules of the Nigerian Stock Exchange. However, Guinness Nigeria will remain a listed company.

“Under the terms of the agreement signed today, June 11, 2024… Tolaram will enter into long-term licensing and royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo conventional and ready-to-drink spirits brand.” said a statement from Guinness Nigeria.

The transaction is expected to close in 2025 pending necessary regulatory approvals.

“Our partnership with Diageo to co-grow Guinness Nigeria underscores our commitment to building on our strong presence and heritage in Nigeria, cultivated over decades of dedication and unwavering confidence in Africa’s future,” said Sajen CEO Aswani Tolaram.

“We take a long-term view in all our investments and this partnership reflects our optimism about the exciting opportunities ahead across the continent.”

“I am excited to announce our new partnership with Tolaram. Guinness has been Nigeria’s favorite beer for almost 75 years. Tolaram shares this passion for Guinness and for Nigeria, making them the perfect partners as we continue to grow our business and seek to delight even more consumers in the country,” said Debra Crew, CEO of Diageo.

*This is a developing story.

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