VITL - Diageo Tolaram Alliance to Aid Growth in Guinness Nigeria | Benzinga
Diageo plc's (NYSE: DEO) focus on improving productivity coupled with its diversified footprint, a solid portfolio of brands, innovation and marketing investments, and pricing initiatives, appear encouraging. In the latest development, the company revealed that it has established a model for Guinness in Nigeria by entering into a long-term partnership with a leading manufacturing, marketing and distribution conglomerate, Tolaram, to drive growth and sell its shareholding in Guinness Nigeria PLC. This transaction is likely to conclude in fiscal 2025, subject to the satisfaction of a few conditions, including the regulatory approvals in Nigeria.
Details of the Alliance
Per the terms of this alliance, Tolaram will buy Diageo's 58.02% shareholding in Guinness Nigeria PLC, which is listed on the Nigerian Stock Exchange, for a share price of 81.60 NGN per share. Boasting a 50-year presence in Nigeria, Tolaram has extensive operations in the region and is quite a popular consumer packaged goods company.
However, Diageo will retain the ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term, thereby empowering its growth and development in the country under Tolaram's stewardship. The company will also remain in the country via ...