Business a.m.
Diageo, the foreign majority shareholder of Guinness Nigeria Plc, has inked a deal to relinquish its controlling 58.02 percent stake in the company to Tolaram, a multinational conglomerate headquartered in Singapore.
The deal between Diageo and Tolaram also includes the establishment of long-term licensing and royalty arrangements that will permit Tolaram to continue manufacturing the iconic Guinness brand and other Diageo beverages locally in Nigeria.
In addition, Tolaram intends to extend its influence in the company by launching a mandatory tender offer to minority shareholders. This would enable Tolaram to deepen its controlling stake in the company, thus consolidating its position as a dominant player in the Nigerian brewing industry.
Guinness Nigeria, in a regulatory filing with the Nigerian Exchange on Tuesday, has indicated that the transaction with Tolaram, which will see the Singaporean multinational acquire Diageo’s controlling stake in the company, is likely to be completed in 2025.
It stated: “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.”
The Singaporean consumer packaged goods giant,is considered a formidable partner for Guinness Nigeria, given its established footprint and formidable presence in the African market. Diageo, recognising Tolaram’s extensive experience and expertise in the African market, is confident the two companies would work in tandem to chart the future of the Guinness brand and its marketing strategy in Nigeria.
Commenting on the proposed acquisition, Omobola Johnson, chairman of Guinness Nigeria, expressed optimism about the opportunities for growth that this deal represents.
“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 remarked.
Adebayo Alli, the managing director of Guinness Nigeria, was equally enthusiastic about the company’s acquisition by Tolaram.
“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 building an enduring and sustainable business,” Alli said.
Haresh Aswani, the managing director of Tolaram Africa, also endorsed the company’s acquisition of Guinness Nigeria, viewing it as a strategic opportunity to enhance Tolaram’s presence in the Nigerian market.
“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.
