Diageo, the majority shareholder in Guinness Nigeria Plc, has agreed to sell its 58.02% stake to Tolaram Group, a multinational company based in Singapore. The agreement, signed on June 11, includes long-term licence and royalty arrangements for the continued production of the Guinness brand and other Diageo beverages in Nigeria. Tolaram will acquire Diageo’s 58.02% shareholding at ₦81.60 per share and will make a mandatory tender offer to minority shareholders, potentially increasing its controlling stake in Guinness Nigeria. The transaction is expected to be finalized in 2025, pending regulatory approvals in Nigeria.
Diageo will retain ownership of the Guinness brand and license it to Guinness Nigeria, ensuring long-term growth under Tolaram’s stewardship. Guinness Nigeria will remain listed on the Nigerian Exchange (NGX). Diageo and Tolaram will collaborate on brand and marketing strategies for Guinness in Nigeria.
Omobola Johnson, Chair of Guinness Nigeria, stated that the partnership brings together Tolaram’s expertise in manufacturing and distribution with Diageo’s brand-building capabilities, positioning Guinness Nigeria for future growth. Adebayo Alli, Managing Director of Guinness Nigeria, expressed enthusiasm for working with Tolaram, a respected consumer goods company, to build a sustainable business. Haresh Aswani, Managing Director of Tolaram Africa, highlighted that the acquisition expands Tolaram’s footprint in Nigeria and leverages their combined strengths to foster innovation and deliver value to customers and shareholders.
Following the announcement, Guinness Nigeria Plc’s shares gained ₦4.24, closing at ₦54.80 from ₦50.55, with a transaction volume of 178,098 shares valued at ₦9.80 million in 31 deals. Tolaram, known for its significant presence in Africa, has a history of successful joint ventures with leading multinational companies. This acquisition marks a strategic move to deepen its footprint in Nigeria’s consumer goods market. Diageo’s decision aligns with its strategy to optimize its operations in Nigeria while ensuring the Guinness brand’s sustained growth through a strong local partner.
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