Tolaram has entered into an agreement to purchase Diageo’s 58.02% stake in Guinness Nigeria and enter into long-term license and royalty arrangements.
This will allow it to maintain the production of the Guinness brand as well as its locally produced Diageo ready-to-drink and mainstream spirits brands.
Under the terms of an agreement signed on June 11, the transaction is anticipated to be finalised in Fiscal 2025, provided that all regulatory clearances are obtained in Nigeria.
The development came after Guinness recently announced a loss record for its first quarter of the year. Report showed that the company reported a N56 billion loss in three months in spite of increase in revenue year on year.
According to a disclosure posted on the Nigerian Exchange, the Guinness brand will continue to be owned by Diageo and licensed to Guinness Nigeria for an extended period of time, allowing Guinness Nigeria to continue expanding under Tolaram’s direction.
In order to guarantee that Diageo’s remarkable skills in brand building and innovation continue to drive long-term growth for Guinness in Nigeria, the company will continue to lead the brand and marketing strategy for Guinness in Nigeria in collaboration with Guinness Nigeria and Tolaram.
After this transaction is finished, Guinness Nigeria will continue to be listed on the Nigerian Exchange. Tolaram plans to initiate a mandatory takeover offer in accordance with local legal requirements, pending regulatory permission.
Adebayo Alli, Managing Director/Chief Executive Officer, Guinness Nigeria, said,
Haresh Aswani, Managing Director, Tolaram Africa, said,
TimesNow.com.ng reported that Guinness Nigeria Plc has announced that it is implementing new prices across significant product lines.
This followed a similar announcement by Nigerian Breweries Plc to effect another increase in the price of its products in an announcement by the company to customers.
It explained that the upward review became necessary considering the continued rising output witnessed in the country.
Source: TimesNow.com.ng
