Tolaram Corporation Pte Ltd signed an agreement to acquire 58.02% stake in Guinness Nigeria Plc from Diageo plc for approximately NGN 104 billion on June 11, 2024. Under the terms of an agreement, Tolaram will acquire Diageo?s 58.02% shareholding in Guinness Nigeria, and enter into long-term license and royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands. Diageo will retain all rights to and ownership of the Guinness brand, it will be licensed to Guinness Nigeria for the long-term, enabling the continued growth and development of the brand in the country under the stewardship of Tolaram. Diageo will also remain in the country through its wholly owned international premium spirits business built to serve a wider geographic reach across West Africa, with Nigeria as one of the main operational hubs. Following completion of this transaction, Guinness Nigeria will remain listed on the Nigerian Stock Exchange and, subject to regulatory approvals, Tolaram intends to launch a mandatory takeover offer in compliance with local law requirements.

The transaction is subject to the satisfaction of certain conditions, including various regulatory approvals in Nigeria and is expected to be completed during Fiscal 2025. Simon Nicholls, Sally Wokes, Warwick Brennand, Laura Houston, Richard McDonnell, Lorna Nsoatabe, Mike Lane, Sarah Osprey, Caroline Phillips, Samay Shah and Phil Linnard of Slaughter and May acted as legal advisor to Diageo. André Duminy, Valerie, André and Olamide of Clifford Chance from London, Hong Kong and Singapore acted as legal advisor to Tolaram in the transaction.