Tolaram Moves To Strengthen Control Over Guinness Nigeria With Mandatory Takeover Bid.
Tolaram, through its subsidiary N Seven Nigeria, has initiated a ₦39.3 billion mandatory takeover bid (MTO) to acquire additional shares in Guinness Nigeria, further solidifying its control over the company.
This follows Tolaram’s acquisition of a 58.02% equity stake in Guinness Nigeria on 4th October 2024 from Diageo. The transaction saw Tolaram purchase 1,270,943,368 ordinary shares from Atalantaf Limited and Guinness Overseas Limited—both subsidiaries of Diageo—for a cash consideration of ₦81.60 per share, amounting to ₦103.7 billion.
Offer to Existing Shareholders
In compliance with Part XII of the Investment and Securities Act (ISA) and Securities and Exchange Commission (SEC) rules, Tolaram’s N Seven Nigeria is now required to make an offer to all remaining shareholders of Guinness Nigeria. The company plans to acquire up to 481,362,887 additional shares at ₦81.60 per share, representing 21.98% of the total issued and fully paid-up share capital of Guinness Nigeria.
If the bid is successful, Tolaram’s total ownership in Guinness Nigeria will rise to 80%, strengthening its position as the majority stakeholder.
Financial and Legal Advisors
To facilitate this takeover bid, Stanbic IBTC has been appointed as the financial advisor to Tolaram’s N Seven Nigeria, while Templars is providing legal advisory services.
Tolaram’s Growing Influence in Nigeria
Tolaram’s aggressive expansion in Nigeria underscores its commitment to strengthening its footprint in the country’s beverage and consumer goods sector. With this latest move, the company aims to leverage Guinness Nigeria’s strong market presence and drive further growth in the industry.
N Seven Nigeria, the entity leading the takeover, is a subsidiary of N-Seven Pte. Ltd., which in turn is a subsidiary of Tolaram Africa Pte. Ltd., a member of the Tolaram Group.
