By InvestAdvocate
Lagos (INVESTADVOCATE) – British multinational alcoholic beverages company Diageo Plc through its wholly owned subsidiary Guinness Overseas Limited plans to increase its equity stake in Guinness Nigeria Plc to 70 percent from 54.3 percent, the Nigerian brewer said on Wednesday in an issuer’s announcement with the Nigerian Stock Exchange (NSE).
The beer maker says Diageo will maintain Guinness Nigeria’s listing on the Nigerian bourse and on proceeding with the proposed transaction, it is intended that, subject to regulatory approval, Guinness Overseas will launch a partial tender offer at a price not higher than N175 per share in cash, giving all shareholders the opportunity to elect to sell some or all of their shares in the brewing firm.
“At the maximum offer price, the proposed offer would represent a premium of 36 percent to the 30-day volume weighted average share price and 40 percent to the company’s closing share price on September 8, 2015,” Guinness Nigeria affirmed.
Also, Guinness Overseas may seek to acquire shares in the market at a price not higher than the offer price of N175 per share.
It disclosed that Diageo would exchange those shareholders that wish to divest their holding in Guinness Nigeria to make contact with Stanbic-IBTC Stockbrokers Limited.
“Please note that today’s Announcement is of Guinness Overseas ‘intention and does not constitute the announcement of an offer itself and create no obligation on Guinness Overseas or Diageo to make an offer,” the Nigerian foremost brewer added.
Guinness Nigeria advised its shareholders that there can be no certainty that any offer will be made, nor as to the price or terms of any offer that may be made.
The proposed partial tender offer will be subject to requisite regulatory approvals, including those of the NSE and the Securities and Exchange Commission (SEC).
The brewer further affirmed that the formal offer documentation will be posted to shareholders as soon as these approvals are obtained.
Share price of Guinness Nigeria at the close of today’s trading on the Nigerian bourse rose five (5) percent to N131.48 from N125.22 traded the previous session; gaining N6.26 per share.
