The board of directors of Guinness Ghana Breweries PLC (the “Company”) today [Wednesday, January 29] announced that Diageo plc agreed to sell its entire 80.4% shareholding in the Company to Castel group, in return for cash consideration equal to GH¢5.15 per share in the Company (the “Transaction”).
The purchase price in Ghana Cedis is to be converted into USD at a rate agreed between Diageo and Castel and will be paid to Diageo in USD at completion of the Transaction.
In connection with the Transaction, the Company and Castel will enter into new licence and royalty agreements to allow the Company to continue to brew, produce and distribute Guinness and the other Diageo brands which are currently produced by the Company in Ghana.
Since the 1960s, Castel has been one of the leading beverage companies on the African continent and has forged partnerships with several leading consumer multinational companies.
Diageo remains deeply committed to Ghana and in partnership with Castel, Diageo will continue to drive the brand and marketing strategy for Guinness in Ghana to ensure Diageo’s exceptional capabilities in brand building and innovation continue to drive long-term growth for Guinness in Ghana.
Commenting on the news, the Board Chair of Guinness Ghana, Felix Addo said: “Guinness Ghana continues to demonstrate strong performance, driven by an exceptional team. This transaction presents an exciting opportunity for the Guinness Ghana Breweries PLC to sustain its momentum and unlock further growth. I am eager to deepen our collaboration with Castel, a trusted partner in the region with a well-established track record of success.”
The Managing Director, Guinness Ghana Breweries PLC, Felicite Nson highlighted: “This is a transformative step for Guinness Ghana and our talented team. Partnering with Castel unlocks new growth opportunities while strengthening our legacy of excellence. With Castel’s expertise and our dedicated people, the future is bright for our business, our brands, and our consumers.”
The Transaction is expected to complete this calendar year, subject to obtaining relevant regulatory approvals.
The Company will, immediately following completion of the Transaction, remain listed on the Ghana Stock Exchange.
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