Tolaram, a Singapore-based holding company, is set to acquire Diageo’s 58.02 percent stake in Guinness Nigeria for approximately N103 billion ($70 million). The acquisition agreement was signed on Tuesday.
Guinness Nigeria, listed on the Nigerian Exchange Limited (NGX), has 2.19 billion outstanding shares, each valued at N50.55 as of June 10. The deal places a premium on the share price, which surged to N54.8 following the announcement, reflecting an 8.41 percent increase.
Diageo Plc, through its subsidiary Guinness Overseas Limited, holds a substantial portion of Guinness Nigeria’s shares. The 58.02 percent shareholding that Tolaram is acquiring equates to approximately 1.274 billion units. The financial statement for the year ending June 30, 2023, indicates that Guinness Nigeria’s issued share capital comprises 2,190,382,819 ordinary shares. Major shareholders include Guinness Overseas Limited with a 50.18 percent stake, Atalantaf Limited with 7.84 percent, Stanbic IBTC Nominees Limited with 6.40 percent, and Mutima Opportunity Fund LP with 5.61 percent.
Post-acquisition, Tolaram plans to enter into long-term license and royalty agreements to continue producing the Guinness brand and Diageo’s locally manufactured ready-to-drink and mainstream spirits. This strategic move is expected to maintain the brand’s presence and production continuity in Nigeria while allowing Tolaram to expand its footprint in the country’s consumer goods sector.
Source: Business Day