Diageo is selling its subsidiary Guinness Ghana Breweries, days after denying reports that it was considering a sale of the entire Guinness brand.

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 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.

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

Drinks conglomerate Diageo (NYSE:DEO) denied speculation Sunday that it was looking to shop the Guinness beer brand and possibly jettison its stake in Moet Hennessy. "We note the recent media speculation around the Guinness brand and our stake in Moët Hennessy and we can confirm that we have no intention to sell either,

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

A report by Bloomberg last week said the FTSE 100 giant was exploring options for both Guinness and its investment in LVMH's Moet Hennessy drinks unit.