Diageo Plc is divesting its stake in Guinness Nigeria Plc, following other multinationals reducing their presence in Nigeria due to severe cost-of-living crisis.
The UK-based company will sell its 58% stake in Guinness Nigeria to Singapore’s Tolaram, a consumer goods operator and investor in Nigeria’s Lekki Deep Sea Port, for 81.6 naira ($0.05) per share, totaling approximately $70 million.
The acquisition, expected to be finalized in fiscal 2025 pending regulatory approvals, will also involve Tolaram entering into long-term license and royalty agreements to continue producing the iconic Guinness brand, as well as Diageo’s ready-to-drink and mainstream spirits in Nigeria.
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With Guinness currently valued at N50.5 per share, the company’s market value stands at N110.7 billion, suggesting the deal could exceed N64 billion.
Diageo states that this move aligns with its strategic vision to maintain brand influence while capitalizing on Tolaram’s robust distribution and manufacturing capabilities.
This acquisition signifies a major expansion of Tolaram’s presence in Nigeria, promising enhanced innovation and value delivery to customers and shareholders.
Board Chair of Guinness Nigeria, Omobola Johnson, reacting to the deal said, “This partnership brings together Tolaram’s deep expertise in manufacturing and distribution with Diageo’s exceptional brand-building and innovation capabilities. It positions Guinness Nigeria for robust growth in this dynamic market.”
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