Spirits giant Diageo has agreed to sell its 80.4% shareholding in Guinness Ghana to Castel Group for $81 million, it said on Tuesday, continuing to refine its operating model in Africa.

Guinness Ghana Breweries, in which Diageo has held an 80.4% shareholding, will remain listed on the Ghana Stock Exchange.

Drinks group Diageo is selling its subsidiary Guinness Ghana Breweries, days after denying reports that it was considering a sale of the entire Guinness brand. The London-listed company said on Monday it was selling its 80 per cent stake in the Ghana subsidiary to French wine group Castel,

Guinness is an outlier in Diageo's business, which consists mostly of spirits rather than beer, but its performance recently has outshone that of key liquor labels, such as Johnnie Walker whisky.

Diageo is selling its 80.4% stake in Guinness Ghana Breweries to Castel Group, enhancing their African partnership. While the sale moves forward, Diageo retains ownership of the Guinness brand and other products.

Reports of the sell off came at a testing period for Diageo boss Debra Crew, who has seen the company’s shares decline under her leadership over the past year-and-a-half. In November, Diageo shares hit their lowest level since 2017.

The drinks giant changed tack over the weekend after declining to comment on a report on Friday (24 January) that it was mulling a potential sale of Guinness.

Media reports suggested Diageo was considering asset sales to boost growth, cashing in on high demand for Guinness. View on euronews