(Alliance News) - Diageo PLC on Tuesday sold its majority shareholding in Guinness Nigeria PLC, which produces and distributes Guinness in Nigeria, to Tolaram.

Tolaram is a Singapore incorporated and headquartered enterprise that operates a diversified business portfolio encompassing the consumer, infrastructure, and fintech verticals across Africa, Asia, and Europe.

Diageo, the owner of Johnnie Walker whisky and Tanqueray gin, said Tolaram will buy the 58% interest in Guinness Nigeria for a share price of NGN81.60 per share, around 4.3 pence per share.

The price represents a 63% premium to the 30-day volume weighted average share price.

Diageo said it has entered a new, long-term partnership with Tolaram to accelerate the growth of Guinness in Nigeria and remains deeply committed to the country.

Diageo will retain ownership of the Guinness brand but this will be licensed to Guinness Nigeria for the long-term, enabling its continued growth and development in the country under the stewardship of Tolaram.

Diageo said it will also remain in Nigeria through its wholly owned international premium spirits business.

Completion of the transaction is expected to be in financial 2025 subject to regulatory approvals in Nigeria.

Diageo said the deal is consistent with its strategy to operate a flexible and asset-light beer operating model. It will continue to drive the brand and marketing strategy of Guinness in Nigeria, in partnership with Guinness Nigeria and Tolaram, Diageo added.

Diageo Chief Executive Debra Crew said: "I'm excited to announce our new partnership with Tolaram. Guinness has been Nigeria’s favourite beer for nearly 75 years. Tolaram share this passion for Guinness and for Nigeria, making them the perfect partners as we continue to grow our business and seek to delight even more consumers in the country."

Shares in Diageo fell 0.9% to 2,584.50 pence each in London on early Tuesday afternoon.

By Jeremy Cutler, Alliance News reporter

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