Eben F Joels Esq.’s Post

Diageo sells its majority stakes in Guinness Nigeria PLC. Acquisition Highlights: - Shareholding: Diageo sells its 58.02% majority stakes in Guinness Nigeria PLC to Tolaram at #81.60 per share. - Intellectual Property: Diageo remain the owner of the ‘Guinness’ brand. Guiness Nigeria PLC will however continue to have the right to manufacture and distribute the Guiness brand as well as other Diageo brands under a long-term license. - Completion: The deal is expected to be completed by 2025, subject to some conditions including regulatory approval. - Aquirer: Tolaram is incorporated and headquartered in Singapore but with 5 decades presence in Nigeria. One of its businesses is Dufil Prima Foods, a joint venture behind popular brands such as Indomie, Mimee, Minimie Chinchin, Power Oil, etc -Target Company: Guinness Nigeria PLC is a public company listed on the Nigerian Stock Exchange. #M&A #MergersandAcquisition

Tolaram is set to acquire Diageo's 58.02% shareholding in Guinness Nigeria Plc, as disclosed in a document filed with the Nigeria Stock Exchange. The acquisition, expected to be completed in Fiscal 2025 pending regulatory approvals, will allow Tolaram to take a leading role in Nigeria's beverage industry. Tolaram will enter into long-term license and royalty agreements to continue producing the Guinness brand and Diageo's local ready-to-drink and spirits brands. Diageo will retain ownership of the Guinness brand, licensing it to Guinness Nigeria long-term. Following the transaction, Guinness Nigeria will remain listed on the Nigerian Exchange Ltd, with Tolaram launching a mandatory takeover offer. Board Chair Omobola Johnson and Tolaram Africa Managing Director Haresh Aswani both highlighted the strategic benefits and growth potential of the partnership. Business exist for 3 reason, Profit Growth and Survival Gentlemen: here on these playbook by both parties, survival is the case. Nigeria economy is a shocker and it requires a business with the Nigerian heart to stay"The Naija spirit" More Mergers acquisition coming up. Happy June 12 to you all

Diageo Sells Nigerian Stakes To Tolaram, Joining Multinationals Exiting. Diageo Plc, the world’s largest spirits producer, is offloading its majority stake in Guinness Nigeria Plc., following the lead of other multinationals either exiting Nigeria or reducing their stakes there. The UK-based company is selling its 58% stake in Guinness Nigeria to Singapore’s Tolaram Group, a consumer goods conglomerate with investments in Nigeria’s Lekki Deep Sea Port, for ₦81.60 per share, about N103 billion. This move aligns with a trend of companies like Unilever, Procter & Gamble, GSK, and Sanofi either scaling back or pulling out of Nigeria entirely, as the country faces its worst cost-of-living crisis, significantly impacting consumer spending. The challenges for international businesses are numerous: Dollar Scarcity: A lack of readily available US dollars makes it difficult for companies to repatriate their earnings. Currency Depreciation: The Nigerian Naira has depreciated by nearly 70% against the dollar since 2016, eroding profits. High Inflation: Decades-high inflation is squeezing consumer spending and hurting overall demand. Despite the sale, Diageo says it will retain ownership of the Guinness brand, licensing it to Guinness Nigeria for continued production. The company will also maintain a presence in the country through their international premium spirits business. The transaction is expected to be finalized in fiscal 2025, pending regulatory approvals in Nigeria. Shares in Guinness rose 8.41% Tuesday, June 11, on the announcement to close at ₦ 55.60, its highest price in four months.

IS GUINNESS NIGERIA trully leaving Nigeria? Guinness is not leaving Nigeria. Diageo, the parent company of Guinness, is selling its 58.02% stake in Guinness Nigeria to Tolaram, but Diageo will retain ownership of the Guinness brand and license it to Guinness Nigeria for long-term production and distribution. Under the new partnership, Guinness Nigeria will continue to operate under the stewardship of Tolaram, with Diageo retaining ownership of the Guinness brand. This arrangement will enable the company to leverage Tolaram's manufacturing and distribution expertise while maintaining Diageo's brand-building and innovation capabilities. Guinness Nigeria will remain listed on the Nigerian Exchange Ltd, and Tolaram intends to launch a mandatory takeover offer in compliance with local law requirements. It's high time some online miscreants and disgruntled elements stop spreading half-baked and unsubstantiated news, all with the aim of pulling down a government.

IS GUINNESS NIGERIA trully leaving Nigeria? Guinness is not leaving Nigeria. Diageo, the parent company of Guinness, is selling its 58.02% stake in Guinness Nigeria to Tolaram, but Diageo will retain ownership of the Guinness brand and license it to Guinness Nigeria for long-term production and distribution. Under the new partnership, Guinness Nigeria will continue to operate under the stewardship of Tolaram, with Diageo retaining ownership of the Guinness brand. This arrangement will enable the company to leverage Tolaram's manufacturing and distribution expertise while maintaining Diageo's brand-building and innovation capabilities. Guinness Nigeria will remain listed on the Nigerian Exchange Ltd, and Tolaram intends to launch a mandatory takeover offer in compliance with local law requirements. It's high time some online miscreants and disgruntled elements stop spreading half-baked and unsubstantiated news, all with the aim of pulling down a government.

Guinness Nigeria Plc (“the Brewer” or “the company”), a subsidiary of Diageo Plc, recorded a decent top line performance (up by 30.5% y/y, from N229.4bn to N299.5bn) in the financial period full year (FY) 2024 (July 2023 to June 2024) despite the challenging macroeconomic environment, which was underpinned by lower consumers’ purchasing power. Some Highlights: * The resilient topline performance was particularly influenced by the transfer of cost burden to consumers in the form of price hikes, amid elevated interest rate & inflationary environment, and the depreciated Naira. * Guinness Nigeria Plc’s operational expenses for the period only climbed by 18.70% y/y, from N58.3bn to N69.2bn, with headline Inflation rate in Nigeria printing at 34.21% y/y as of June 2024... * Given the steadied focus on operational efficiency in the financial period ended 30 June 2024, there was a recovery in the trajectory of the company’s EBITDA, which took a knock in the financial period ended 30 June 2023... * In the period under review, the company’s foreign currency (FCY) liabilities (loans and other payables) due to related parties (the parent and ultimate controlling Company Diageo plc and other Diageo group entities, “Diageo”) surged by 87.3% y/y (from N80.3bn in FY 2023, to N150.4bn), particularly powered by exchange rate differences and elevated cost of capital. Ultimately, the acquisition (which is expected to eliminate the FX liability component) by Tolaram will represent a silver lining for Guinness Nigeria Plc's recovery and future profitability, resulting in significant improvement in key solvency (financial leverage, Net debt-to-equity and debt-to-capital) and liquidity (current, quick and cash) ratios. Looking ahead, the Brewer’s revenue to continue to improve, growing at a Compound Annual Growth Rate (CAGR) of 16.8% in the next five years... #United Capital Plc "The Intelligent Choice" #Guinness Nigeria Earnings Update   Disclaimer United Capital Plc Research (UCR) notes are prepared with due care and diligence based on publicly available information as well as analysts’ knowledge and opinion on the markets and companies covered; albeit UCR neither guarantees its accuracy nor completeness as the sole investment guidance for the readership. Therefore, neither United Capital (UCAP) nor any of its associates or subsidiary companies and employees thereof can be held responsible for any loss suffered from the reliance on this report as it is not an offer to buy or sell securities herein discussed. Please note this report is a proprietary work of UCR and should not be reproduced (in any form) without the prior written consent of Management. UCAP is registered with the Securities and Exchange Commission and its subsidiary, United Capital Securities Limited is a dealing member of the Nigerian Stock Exchange. For enquiries, contact United Capital Plc, Afriland Towers (3rd Floor), 97/105, Broad Street, Lagos. ©United Capital Plc 2019.  

Today marks my first full year as Managing Director of Guinness Ghana Breweries PLC and as I reflect on my journey, one word resonates deeply ‘BOLD’. This powerful theme, which anchors our culture at Diageo South, West, and Central Africa, is a reminder to strive to be authentic and fearless, to have conviction in our decisions, and to take ownership of them. The past year has been a journey of embracing challenges head-on. Transitioning into a new environment, navigating an ever-evolving and challenging business environment, anticipating and adapting to the ever changing consumer behaviour, all while forming bonds and relationships with a talented new team and key stakeholders have been a real test. But through it all, we have remained bold in our approach, authentic to our values, fearless in our pursuit of excellence, and delivered an outstanding performance. For me personally, being bold has meant stepping outside my comfort zone, un-learning, and re-learning about a new culture, confronting vulnerability, staying curious, making decisions with conviction, embedding the value of courage in the organisational culture and learning to own the outcomes irrespective of successes or setbacks. It has been a year of immense personal and professional growth. I’ve learned that true boldness isn’t just about the grand gestures; it’s about the courage to take smart risks, the humility to listen, care for and be connected to the people I lead. It’s about the courage to dare, to keep on pushing the limits of what I think is possible and stay ahead of the course, even when the path is uncertain. Being bold has paid off in remarkable ways. Guinness Ghana was recognized as an industry leader by a plethora of coveted prestigious awards, a testament to the conviction with which we have led and the dedication of our entire team. As I look to the future, I remain hopeful and optimistic. I relish the challenges ahead because I know that by staying bold, by continuing to lead with authenticity and conviction, we will not only overcome obstacles but also create new opportunities for growth and innovation. The journey has just begun, and I am excited about what lies ahead for Guinness Ghana Breweries. Together, with my amazing team, we will continue to push boundaries, challenge the status quo, and shape a future full of promise. #BoldProgressiveConnected #DareForMore #DiageoSWC #GuinnessGhana #Diageo

Diageo's sale of its 58% stake in Guinness Nigeria to Tolaram for $70 million signals a retreat from the Nigerian market amidst economic challenges. The sale, combined with the retention of marketing strategy leadership for Guinness brands, suggests a desire to maintain brand presence without fully committing to the market. This move may be a strategic response to Nigeria's harsh economic realities, including a 33% inflation rate, but it also raises questions about the future of the Guinness brand in Nigeria and the impact on local employees. #GuinnessNigeria #Diageo #Tolaram #NigerianEconomy #Inflation #BeerMarket #BusinessStrategy https://lnkd.in/eJfSKHsC

The fallout from #Nigeria's business climate continues with #Diageo announcing it will sell 58% of its #Guinness #Nigeria business. The company, which put down roots in 1950, joins an exodus of multinational companies leaving the harsh operating environment. The good news is that the business has been bought by #Singaporean company #Tolaram that already has deep roots in the country. Swings and roundabouts, although the optics of a #disinvestment are never good for a country.