World’s biggest distiller, Diageo, is considering increasing its majority stake in Guinness Nigeria Plc to 70%, in a deal that could cost more than $200 million.
Guinness Nigeria, in a statement on Wednesday, said the maker of Johnnie Walker whisky and Smirnoff vodka plans to make a tender offer of 175 naira per share to raise its shareholding from 54.3% to 70%.
Guinness Nigeria shares gained 5% to 131.48 naira as of 1 p.m. in Lagos, valuing the brewer at 198 billion naira.
Diageo is looking to get 20% of its sales from Africa after investing more than $1 billion in the continent over the last five years, Chief Executive Officer Ivan Menezes said in February.
Guinness Nigeria, the country’s second biggest brewer, said Sept. 7 that full-year profit fell 19% as weaker economic growth in the continent’s most populous country hurt sales of pricier beer brands.