Tolaram
Africa, a consumer packaged goods company with about five-decade presence in
Africa, has acquired a major stake in Guinness Nigeria.
Updating
the Nigerian Exchange Group of recent development within the bank, Diageo’s
Company’s Secretary, Abidemi Ademola, said the terms of an agreement for the
acquisition of the shares by Tolaram was signed today, June 11, 2024.
“Tolaram
will acquire Diageo’s 58.02% shareholding in Guinness Nigeria, and enter into
long-term license and royalty agreements for the continued production of the
Guinness brand and its locally manufactured Diageo ready-to-drink and
mainstream spirits brands.
“The
transaction is expected to be completed during Fiscal 2025, subject to
obtaining the requisite regulatory approvals in Nigeria,” Ademola said.
Ademola
said Diageo remained deeply committed to Nigeria and would retain ownership of
the Guinness brand, which would 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.
“In
partnership with Guinness Nigeria and Tolaram, Diageo will continue to drive
the brand and marketing strategy for Guinness in Nigeria, to ensure Diageo’s
exceptional capabilities in brand building and innovation continue to drive
long-term growth for Guinness in Nigeria.”
Ademola
said following completion of this transaction, Guinness Nigeria would remain
listed on the Nigerian Exchange Ltd. and, subject to regulatory approvals,
Tolaram has plans to launch a mandatory takeover offer in compliance with local
law requirements.
Board
Chair of Guinness Nigeria, Omobola Johnson, said, “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.”
Managing
Director of Guinness Nigeria, Adebayo Alli, said, “Today’s announcement marks
an exciting moment for Guinness Nigeria, our employees and our customers. 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
build an enduring and sustainable business”.
Also,
Tolaram Africa’s Managing Director, Haresh Aswani, said, “We are thrilled to
welcome Guinness Nigeria, a company with such a rich legacy and strong consumer
loyalty, into our ecosystem. 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.”