Diagoe’s decision plunges Guinness Nigeria share value by N14.4bn

The decision of Diageo Plc not to proceed with proposed acquisition of 15.7 per cent in Guinness Nigeria Plc has plunged the share price of Guinness by N14.366 billion within four days.

Guinness Nigeria made the decision known to its shareholders through the Nigerian Stock Exchange on Tuesday 4 October, 2016 when it share price was N97.99 kobo per share.

Guinness share price fell by N9.54 kobo from N97.99 kobo to N88.45 kobo per share between Tuesday and Friday, which represented 9.74 per cent of the share value.

The total market capitalization of Guinness Nigeria as at Tuesday was N147.562 billion dropped to N133.196 billion at the end of weekly trading on Friday.

The current share price of Guinness Nigeria Plc’s (N88.45) is the lowest in the last 52 trading days on the Nigerian bourse.

Diageo had on Tuesday said it will not proceed with potential offer to increase its equity stake in Guinness Nigeria.

It cited the challenges market conditions in Nigeria over the past 12 months as justification for pulling out of the deal.