Tolaram Completes Acquisition of Guinness Nigeria, Announces New Board

Raheem Akingbolu

Following the granting of all requisite regulatory approvals, Guinness Nigeria Plc has announced that the sale of Diageo’s shareholding in Guinness Nigeria to Tolaram has now been completed, effective  yesterday,  September 30, 2024.

In June 2024, Diageo and Tolaram announced a proposed transaction that would have Diageo transfer ownership of its 58.02 per cent shareholding in Guinness Nigeria to Tolaram, making Tolaram the new majority shareholder.

This is while establishing long-term licence and royalty agreements for the company’s continued production, marketing and sale of the Guinness brand and all its locally manufactured Diageo ready-to-drink and mainstream spirits brands in Nigeria.

The successful completion of the transaction marked the beginning of a new era for the Company’s longstanding presence in Nigeria where it has for over seven decades been intricately woven into the fabric of Nigerian culture and society.

 Guinness Nigeria, one of the most reputable corporate entities in Nigeria known for iconic brands like Guinness, Malta Guinness and Orijin remains firmly rooted in Nigeria and is set to continue its historic journey in the country, leveraging the vast experience and footprints of Tolaram.

Following the completion of the transaction in a corporate action announcement approved by the Nigeria Exchange Limited for publication on the NGX Issuers portal, Guinness Nigeria Plc announced fresh resignations from and appointments to its Board of Directors.

Commenting on the completion of the share transfer transaction and the newly constituted Board, Board Chair, Dr. Omobola Johnson remarked that in this new era, the firm will embrace the tremendous opportunities presented.

“The Board, Management and employees of Guinness Nigeria are excited about what the future holds in this new era as we embrace the tremendous opportunities presented by the vast experience and decades of remarkable presence of Tolaram in Nigeria building great brands.

“We thank all the directors that are exiting the board for their contributions to the growth of Guinness Nigeria and their tireless efforts to ensure a smooth transition for the share transfer transaction.

“Especially we commend Mr. Adebayo Alli, the outgoing Managing Director who during his short but remarkable tenure delivered a solid platform for the future growth of Guinness Nigeria. We wish him well as he moves into his exciting new role within Diageo Africa,” Johnson stated.

Johnson also welcomed all the newly appointed Directors to the Board as the Board looks forward to their contributions in taking the business of the Company to new heights of growth, sustainability, and value creation for all stakeholders.

In the new appointments announced, Mr. Girish Sharma, a seasoned business leader with a track record of transformative leadership will assume the role of Managing Director/CEO.

Sharma holds an MBA in Marketing from the University of Kent and executive leadership qualifications from Harvard, Stanford and Cambridge Universities, focusing on leadership, sustainability, and business management.

Until his appointment, Mr. Sharma was CEO of Tolaram’s joint venture with Colgate-Palmolive, delivering a remarkable 70 per cent compound annual growth rate in top-line revenue year-on-year in the five-year period since the inception of the Colgate-Palmolive Tolaram joint venture.

 Sharma was also Chief Operating Officer of the Tolaram’s manufacturing company, Dufil, in which capacity he oversaw the growth of Tolaram’s flagship instant noodle brand, Indomie, to a household name and market leader in Nigeria and Ghana.

Also commenting on the new changes in the business, Managing Director, Tolaram Africa, and newly appointed Vice-Chair of the Board of Guinness Nigeria PLC, Mr. Haresh Aswani, expressed his delight at the completion of the share transfer transaction and the optimism that Guinness Nigeria is poised for a new era of growth and expansion that offers stakeholders enhanced value.

He stated: “This is indeed a remarkable milestone in the history of two great businesses in Guinness and Tolaram. We are excited about the possibilities that this partnership will bring for everyone associated with Guinness Nigeria including its shareholders, employees, and trade partners. The experience of Tolaram across the African continent over the last 50 years will inevitably be a positive boost to Guinness Nigeria in the coming years.”