DRINKS company Diageo refuted rumours that it could sell Guinness or its 34 per cent holding in Moet Hennessy.

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

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

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.

Diageo isn’t alone among distillers in getting hit by a slump in demand, and by a corresponding blow to sales and profit. The shares of rivals such as Pernod Ricard, owner of Jameson Whiskey, Absolut vodka and Beefeater gin, and Cognac producer Remy Cointreau have fallen even further as the pandemic-era boom fizzled out.

As part of the deal, the drinks giant will retain ownership of the Diageo brands that are produced by Guinness Ghana (such as Guinness, Malta, Orijin, Smirnoff Ice and Alvaro), with the rights instead licensed to Guinness Ghana under a new long-term agreement.

Diageo ( DEO) ADRs rose Friday after Bloomberg reported that the company was looking at a potential spinoff or sale of Guinness, which may be valued at more than $10 billion.

Diageo announced on Thursday that the spirits behemoth was selling off yet another brand, Cacique Rum, to the French spirits company, Bardinet. The latest move marks a slightly worrying trend for Diageo.