Tolaram Takes a Stake in Guinness Nigeria
4 Customs Street: 17 Jun 2024
Welcome to this week’s edition of 4 Customs Street, our weekly newsletter on the stock market.
The newsletter is divided into two parts:
Green White Green is focused on the Nigerian stock market.
Star-Spangled Banner is focused on the US stock market
Green White Green This Week
Tolaram to buy out Diageo’s stake in Guinness Nigeria
Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria, and enter into long-term license and royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands.
Proposed transaction price is N81.60 per share amounting to N70 billion.
The transaction is expected to be completed during fiscal 2025, subject to obtaining the requisite regulatory approvals in Nigeria.
Diageo will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long-term, enabling the next phase of growth and development of Guinness Nigeria under the stewardship of Tolaram.
Following completion of this transaction, Guinness Nigeria will remain listed on the Nigerian Exchange Limited and, subject to regulatory approvals, Tolaram intends to launch a mandatory takeover offer in compliance with local law requirements. This means it will make an offer to buy shares held by other investors aside Diageo.
Tolaram’s business venture include Dufil Prima Foods, a joint venture with Indofood and Kellogg’s (which produces indomie and minimie noodles, power pasta and power oil), Lucky Fibres (which produces Nobel Carpets and lush hair) and TG Arla Dairy Products, a joint venture with Danish firm, Arla Foods, which imports and packages Dano milk in Nigeria.
GTCO is warming up
Guaranty Trust Holding Company Plc (GTCO) has filed a preliminary “red herring” prospectus with the Securities and Exchange Commission in connection with a proposed offering of ordinary shares to raise gross proceeds of up to N500 billion (the proposed offering).
The number of ordinary shares to be offered and the price range for the proposed offering have not yet been determined.
A prospectus is a legal document offering a company's shares for sale, and giving details about the company and its activities.
A red herring is a preliminary prospectus filed with the SEC.
Access Bank acquisition deal
Access Bank Plc has completed the acquisition of majority equity stake in African Banking Corporation of Tanzania (ABCT) Limited, a subsidiary of Atlas Mara Limited,
Following the completion of the Transaction, ABCT will be merged with the consumer, private, and banking business of Standard Chartered Bank Tanzania to be acquired by the Bank to establish Access Bank Tanzania as an enlarged entity within Tanzania's banking landscape.
Seplat and court proceedings
Seplat Energy notified the market via a notice of the Settlement Agreement between NNPCL, ExxonMobil Corporation, Delaware and Mobil Producing Nigeria Unlimited (“MPNU”) and the termination of the court proceedings brought by NNPCL against MPNU and its affiliates over the proposed divestment of MPNU’s shares to Seplat Energy Offshore Limited (“SEOL”).
Green White Green This Week
The stock market will be closed on Monday and Tuesday due to public holidays declared by the federal government.
More details from the various banks warming up to raise money will pour in.
Star-Spangled Banner Last Week
On the foreign scene, it was a relatively quiet week. Tesla’s shareholders approved Elon’s bumper $56 billion package. The US Fed left interest rates unchanged (that was expected). What wasn't expected was the Fed signalling there would be only one interest rate cut this year.
Inflation numbers for May came in flat.
Star-Spangled Banner This Week
This week is a relatively quiet one in terms of earnings except for home builders Lennar and KB Home which will be releasing their most recent quarterly earnings.
As players in that space, they have insight into housing demand and inflationary pressure on materials.
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