05.10.2016 18:48:41

Diageo: Bigger Stake In Guinness Nigeria Not On Tap

(RTTNews) - Diageo PLC has scrapped plans to raise its stake in Guinness Nigeria, blaming the tough marketing conditions in the country over the past 12 months.

In 2015, Diageo said it would increase its stake in Guinness Nigeria to 70% from 54.3%, for about $208 million. But Nigeria's oil-dependent economy has since slowed down and Guinness Nigeria shares have also fallen to trade well below the price Diageo offered last year.

The company said Wednesday it would not proceed with the offer, and will instead focus its resources on continuing to support Guinness Nigeria.

The London-listed Diageo had last month provided a $95 million loan to Guinness Nigeria. Nigeria makes up roughly 3% of Diageo's revenue.

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