Tolaram Group has acquired a 58.02% stake in Guinness Nigeria from Diageo Plc. for ₦81.60 per share, representing approximately a 60% premium over Guinness Nigeria’s closing price of ₦50 on Monday.
Announced on June 11, 2024, the acquisition underscores Tolaram’s commitment to expanding its footprint in Nigeria’s robust consumer market.
Diageo, the UK-based beverage giant, will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria, now under Tolaram’s majority control, through long-term agreements.
Under the terms of the deal, Tolaram will initiate a mandatory takeover offer in compliance with Nigerian Exchange regulations.
However, Guinness Nigeria will continue to be publicly listed, maintaining its presence on the Nigerian Stock Exchange.
A statement from Guinness Nigeria highlighted the terms of the agreement, confirming the continued production of the Guinness brand along with Diageo’s locally manufactured ready-to-drink and mainstream spirits under license and royalty agreements.
The transaction is slated for completion in 2025, pending necessary regulatory approvals.
Commenting on the acquisition, Sajen Aswani, Tolaram’s Chief Executive, said: “Our partnership with Diageo to jointly grow Guinness Nigeria underscores our commitment to build on our strong presence and heritage in Nigeria, cultivated over decades of dedication and unwavering confidence in the future of Africa. We take a long-term view on all our investments, and this partnership reflects our optimism on the exciting opportunities that lie ahead across the continent.”
Diageo CEO Debra Crew echoed Aswani’s sentiment “I’m excited to announce our new partnership with Tolaram. Guinness has been Nigeria’s favourite beer for nearly 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.”
This strategic acquisition is expected to bolster Guinness Nigeria’s market position, leveraging Tolaram’s extensive experience in the consumer goods sector to drive growth and innovation.
The partnership aims to enhance the availability and appeal of Guinness and other Diageo products in Nigeria, contributing to the country’s economic development and consumer satisfaction.
