Guinness Nigeria gives updates on ownership transition

Published by

10 months ago

GUINNESS Nigeria Plc has said it is on the verge of completing its ownership transition, as the company’s Board of Directors confirmed that the sale of Diageo’s majority stake to Tolaram is progressing smoothly.

In a notice to the Nigerian Exchange Limited (NGX), the board outlined the latest developments in the ownership transfer and the future course for the company as discussed in a board meeting held on September 26.

The transaction involves the sale of Diageo’s 58.02 percent stake in Guinness Nigeria to Tolaram, a move that was first announced in June 2024. Diageo, a global beverage leader, has held a controlling stake in the Nigerian company since 1997, following a merger between Arthur Guinness and Grand Metropolitan.

The much-anticipated deal is a significant shift in the company’s direction after decades of majority ownership by Diageo.

The sale ends Diageo’s over 50-year direct ownership of Guinness Nigeria, signalling a major change in the company’s ownership structure and strategic outlook.

As the sale nears completion, Guinness Nigeria’s board has taken key steps to ensure a smooth transition of majority ownership.

The board approved several measures to maintain business continuity, noting that it “approved salient actions and agreements to give effect to the transition of majority shareholding and business continuity, subject to the completion of the sale.”

Tolaram’s entry into the Nigerian alcoholic beverage market is seen as a potential game changer, but it also presents new challenges as the company prepares to manage its first venture in the sector.

Central to the board’s discussions is the progress on the sale of Diageo’s stake to Tolaram. The sale represents the conclusion of Diageo’s longstanding involvement in the Nigerian company and opens the door to new possibilities under Tolaram’s leadership.

The board assured stakeholders that the transaction is moving forward as planned, with necessary steps being taken to facilitate a seamless transfer of ownership.

Tolaram’s acquisition brings opportunities for Guinness Nigeria to leverage its extensive distribution network across Nigeria, potentially reducing operational costs and improving profitability.