By Bisola Ologunde

Diageo Plc, the parent company of Guinness Nigeria Plc, has announced plans to increase its equity stake in Guinness from 54.3 per cent to a maximum of 70 per cent.

In a statement signed by the company’s secretary, Sesan Sobowale, the company noted that Guinness overseas will launch a partial tender offer at a price not higher than N175 per share in cash, noting that it would give the shareholders the opportunity to elect to sell some or all of their shares in the company.

”At the maximum offer price, the proposed offer would represent a premium of 36 per cent to the 30-day volume weighted average share price and 40 per cent to the company’s closing share price on 8th September 2015” Sobowale said.

Sobowale noted that Guinness Overseas may also seek to acquire shares in the market at a price not higher than the offer price of N175 per share.

“Diageo will encourage those shareholders that wish to divest their holdings in Guinness Nigeria to make contact with Stanbic-IBTC Stockbrokers Limited’, the company stated.

The proposed partial tender offer would be subject to requisite regulatory approvals, including those of the Nigerian Stock Exchange and the Securities and Exchange Commission (SEC), the company said, adding that Guinness Nigeria would remain listed after the transaction.