The owners of Dufil Prima Foods, Tolaram Group, have announced plans to purchase Guinness Nigeria Plc’s 58.02 percent stake from Diageo. It would eventually be delisted from the stock market as a result of the deal, which will also see the Tolaram initiate a required buyout of minority shareholders after receiving all necessary regulatory permissions. In a notice to the Nigerian Exchange Limited (NGX), Mrs. Abidemi Ademola, Legal Director/Company Secretary for this company, stated that the transaction is anticipated to be finalised in 2025.
In order to guarantee that Diageo’s remarkable skills in brand building and innovation continue to drive long-term growth for Guinness in Nigeria, Ademola stated that under the terms of the agreement, Diageo, in collaboration with Guinness Nigeria and Tolaram, would continue to drive the brand and marketing strategy for Guinness in Nigeria.
According to the statement, “Tolaram will purchase Diageo’s 58.02% stake in Guinness under the terms of an agreement signed today, June 11, 2024, and enter into 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 brands.” It is anticipated that the deal will be finalised in the fiscal year 2025, provided that the necessary regulatory clearances in Nigeria are obtained.
“Diageo is still steadfastly dedicated to Nigeria and will continue to own the Guinness brand, which will be long-term licenced to Guinness, allowing it to move forward with its next phase of growth and development under Tolaram’s direction. “Tolaram is one of the biggest consumer packaged goods companies in Africa, having been there for five decades.
It has formed joint venture arrangements with other top consumer global companies. “Guinness Nigeria will continue to be listed on the Nigerian Exchange Ltd. once this deal is completed, and Tolaram plans to initiate a mandatory takeover offer in accordance with local legal requirements, pending regulatory approvals.
Omobola Johnson, Board Chair of Guinness Nigeria, commented on the purchase, saying, “Today’s announcement represents a significant opportunity for Guinness Nigeria’s next phase of growth.” This cooperation combines Tolaram’s extensive manufacturing and distribution experience with Diageo’s unparalleled brand building and innovation capabilities.
I believe this is a winning mix, and Guinness Nigeria is incredibly well positioned to achieve additional growth in this market.” Adebayo Alli, Managing Director/Chief Executive Officer of Guinness Nigeria, stated, “Today’s announcement is a momentous occasion for Guinness Nigeria, our workers, and our customers.
I am excited to collaborate with Tolaram, one of Africa’s largest and most regarded consumer goods firms, and I am thrilled to see Tolaram’s affinity with Guinness Nigeria’s values and strong commitment to building an enduring and sustainable business.
Guinness Nigeria
” Haresh Aswani, Managing Director of Tolaram Africa, stated, “We are delighted to welcome Guinness Nigeria, a firm with such a rich tradition and great consumer devotion, into our ecosystem. This strategic move will increase our strong presence in the Nigerian market and provide an opportunity to utilise our combined strengths to drive innovation and create enormous value to our customers and shareholders throughout the country.”
