Diageo bins plans to raise stake in Guiness Nigeria

Diageo binned plans to raise its stake in Guinness Nigeria as a result of tough market conditions in Africa's largest economy, even after Abuya abandoned a currency peg in the middle of the year.

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In 2015, the spirits-maker said it would increase its stake in Guinness Nigeria by another 15.7 percentage points, taking it to 70%, for about $208m.

Now, management preferred to continue to support its subsidiary instead of lifting its stake.

London-listed Diageo provided a $95m loan (£71.2m) to Guinness Nigeria in September in order to help see it through a dearth of US dollar in that market.

A future rights issue was one possible option for recapitalising the unit, according to a source familiar with the deal cited by Reuters.