Guinness Nigeria Plc’s foreign majority stakeholder, Diageo, has decided to sell Tolaram, a global company based in Singapore, its controlling ownership holding of 58.02 percent.
In accordance with a deal announced on Tuesday, Tolaram will purchase Diageo’s 58.02 percent stake in Guinness Nigeria and enter into long-term licence and royalty agreements for the company’s domestically produced Diageo mainstream and ready-to-drink spirits brands as well as the Guinness brand.
Tolaram plans to grow its controlling position by acquiring 58.02 percent of the company and subsequently pursuing the acquisition of minority shareholder shares through a forced tender offer.
The board of Guinness Nigeria stated in a regulatory filing at the Nigerian Exchange (NGX) that the transaction is anticipated to close in 2025, provided that the necessary regulatory permissions are obtained 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,” Guinness Nigeria stated.
Tolaram is a prominent consumer packaged goods company in Africa that has been there for five decades. It has formed joint venture ties with several top multinational consumer corporations.
In order to guarantee that Diageo’s remarkable skills in brand building and innovation continue to drive long-term success for Guinness in Nigeria, Guinness Nigeria stated that Diageo will continue to drive the brand and marketing strategy for Guinness in Nigeria in collaboration with Tolaram.
As planned, Guinness Nigeria will continue to be listed on the NGX after the acquisition is completed. Recent purchases, however, have resulted in a complete control and delisting of the businesses.
The acquisition announcement, according to Guinness Nigeria Chairman Omobola Johnson, marks a major opportunity for the company’s next stage of expansion.
“This partnership brings together Tolaram’s deep expertise in manufacturing and distribution, and Diageo’s exceptional capabilities in brand building and
innovation. I believe this is a winning combination which leaves Guinness Nigeria extremely well placed to drive further growth in this market,” Johnson said.
Adebayo Alli, Managing Director of Guinness Nigeria, called the announcement a thrilling time for the company, its staff, and its clients.
“I look forward to working alongside Tolaram, which is one of the largest and most respected consumer goods companies in Africa, and I am pleased to note Tolaram’s alignment with Guinness Nigeria’s values and its strong commitment to build an enduring and sustainable business,” Alli said.
Haresh Aswani, Managing Director of Tolaram Africa, expressed the group’s excitement at welcoming Guinness Nigeria, a business with a long history and devoted customer base.
“This strategic move will expand our significant footprint in the Nigerian market and presents an opportunity to leverage our combined strengths to foster innovation and deliver immense value to our customers and shareholders across the nation,” Aswani said.
