Tolaram Group Digs in, Acquires Guinness Nigeria Plc, Announce New Board

By Ed Malik, A | ed@ddnewsonline.com | posted Ocotober 3rd, 2024

The recent sale of Diageo’s 58.02% stake in Guinness Nigeria Plc to Tolaram, finalized on September 30, 2024, marks a significant shift in the ownership of the renowned Nigerian company.

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In a mega deal announced on June 2024, Diageo and Tolaram 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.

Popular subsidiaries of the Tolaram Group currently active in West African countries, include Dufil Prima Foods, manufacturer of Nigeria’s best-loved cereal brands, Indomie, Mimee and Minimie instant noodles, Minimie Chinchin, Minimie Pasta, Power Pasta, Power Oil, Emperor Oil, Pure Flour, and Semolina. Other companies are Lucky Fibres (Nigeria) Limited, Multi-pro Enterprise Limited and Th Investeeringute As

As part of the deal, long-term license and royalty agreements were established, allowing Guinness Nigeria to continue producing and marketing Diageo brands like Guinness, ready-to-drink beverages, and spirits in the country.

This transaction underscores Guinness Nigeria’s long-standing role in Nigerian culture, which spans over seven decades, and now positions Tolaram as the majority shareholder.

The corporate action also led to key changes in the Board of Directors, with fresh appointments and resignations. Board Chair Dr. Omobola Johnson highlighted that this new chapter will bring tremendous opportunities for growth and expansion under Tolaram’s leadership, leveraging the new shareholder’s extensive experience and business footprint.

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“This transition sets the stage for Guinness Nigeria to continue its legacy in the country while embarking on new ventures.”

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.

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“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.

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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.”