Guinness Overseas plans to raise equity stake in Guinness Nigeria

09 Sep 2015
Financial Nigeria

Summary

The total value of the transaction at the intended offer price is approximately N41.3 billion.

US President Barack Obama and his wife, Michelle Obama, drinking Guinness stout in Ireland

The parent company of Guinness Overseas Limited, Diageo, has informed the Board of Directors of Guinness Nigeria Plc and notified the Nigerian Stock Exchange (NSE) of its intention to make an offer to increase Diageo's equity stake in Guinness Nigeria from 54.3% up to a maximum of 70%.

The producer of world-class brands such as Johnnie Walker and Smirnoff, Baileys, among others, also made its intention known to maintain Guinness Nigeria’s listing on the NSE.  
 
Under the terms of the offer, Diageo will launch a partial tender offer at a price not higher than N175 per share in cash to acquire up to 236,176,604 ordinary shares of 50 kobo each in Guinness Nigeria Plc.  The offer will give any shareholder who elects to sell some or all of their shares in Guinness Nigeria the opportunity to do so. Guinness Nigeria currently has 1,505,888,188 ordinary shares in issue.

The offer price represents a premium of 40 per cent to the closing share price of Guinness Nigeria on Tuesday, September 8, 2015. The total value of the transaction at the intended offer price is approximately N41.3 billion (US$206.7 million).
 
Although Guinness was first imported to Nigeria in the 19th century, its first brewery outside of Ireland and Great Britain was in Lagos. The Guinness Brewery in Lagos was opened in 1962, after establishing Guinness Nigeria 1950 to brew and distribute the popular stout in West Africa.

The offer will be subject to regulatory approvals by the Nigerian Stock Exchange and the Nigerian Securities and Exchange Commission.


 


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