Business Diageo Offers $280m to Control 70% of Guinness Nigeria Stakes

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Diageo has offered $280 million to Guinness Nigeria —which houses brands like Guinness, Harp and Malt—to increase its stake in the company to 70% from 54.3% as the world’s largest spirits company looks to wield more control over its African business.

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London-headquartered Diageo, which makes Smirnoff vodka and Johnnie Walkerwhisky, said it has proposed launching a tender offer to buy shares in Guinness Nigeria from shareholders for a per-share price of 175 Nigerian naira (roughly 88 cents) in cash, or a 40% premium to the company’s closing price on Tuesday.

The company said it could also look to acquire shares in the market for 175 naira per share or below if a deal is approved. The proposed deal would be subject to regulatory approval by the Nigerian Stock Exchange and the Nigerian Securities and Exchange Commission.


Wall Street Journal
 
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