Tolaram takeover of Guinness Nigeria almost completed — NGX notice

Guinness Nigeria Plc has announced that its ownership transition is nearing completion, with the Board of Directors confirming that the sale of Diageo’s majority stake to Tolaram is progressing smoothly.

In a notice to the Nigerian Exchange Limited (NGX), the company outlined the latest developments in the ownership transfer, following discussions at a board meeting held on September 26, 2024.

The transaction, first announced in June 2024, involves the sale of Diageo’s 58.02 percent stake in Guinness Nigeria to Tolaram.

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. This sale marks the end of Diageo’s over 50-year direct ownership of Guinness Nigeria, signalling a significant shift in the company’s ownership structure and strategic direction.

As the sale nears its final stages, the Guinness Nigeria board has taken key steps to ensure a smooth transition. The board emphasised that it has “approved salient actions and agreements to give effect to the transition of majority shareholding and business continuity, subject to the completion of the sale.”

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Tolaram’s entry into the Nigerian alcoholic beverage market is being viewed as a potential game changer. However, it also poses new challenges as Tolaram prepares to manage its first venture in the sector. Central to the board’s discussions was the progress on the sale, marking the conclusion of Diageo’s longstanding involvement in Guinness Nigeria and paving the way for Tolaram’s leadership.

The board assured stakeholders that the transaction is moving forward as planned, with necessary measures being taken to ensure a seamless transfer of ownership. Under Tolaram’s acquisition, the brand is expected to benefit from the company’s extensive distribution network across Nigeria, potentially reducing operational costs and improving profitability.