11th June, 2024
By Rukayat Moisemhe
Diageo’s 58.02 percent shareholding in Guinness Nigeria Plc is to be acquired by Tolaram Africa, following an agreement signed on June 11.
Mrs. Omobola Johnson, Board Chairman, Guinness Nigeria, disclosed this in a statement signed by Mrs Eniola Alli-Faweya, the Head of Corporate Communications, on Tuesday in Lagos.
According to Johnson, Tolaram has entered a long-term license and royalty agreement for continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands.
She said that the transaction was expected to be completed during the fiscal year 2025, subject to obtaining the requisite regulatory approvals in Nigeria.
Johnson stated that following the completion of the transaction, Guinness Nigeria would remain listed on the Nigerian Stock Exchange Ltd.
She added that subject to regulatory approvals, Tolaram intends to launch a mandatory takeover offer in compliance with local law requirements.
“Today’s announcement represents a significant opportunity for the next phase of growth for Guinness Nigeria.
“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,” she said.
Adebayo Alli, Managing Director, Guinness Nigeria, said the announcement marked an exciting moment for Guinness Nigeria, its employees and customers.
Alli expressed readiness to work alongside Tolaram, which was described as one of the largest and most respected consumer goods companies in Africa.
“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, Tolaram Africa, said the group was thrilled to welcome Guinness Nigeria, a company with rich legacy and strong consumer loyalty into its ecosystem.
Aswani said the strategic move would expand the company’s significant footprint in the Nigerian market and presented an opportunity to leverage their combined strengths to foster innovation and deliver immense value to customers and shareholders.
The News Agency of Nigeria (NAN) reports that Tolaram is one of the largest consumer packaged goods companies on the continent.(NAN)(www.nannews.ng)