Heineken launches mandatory takeover bid of Champions Breweries; offers to buy out remaining 15.3% equity stake.

Renowned Dutch brewing company, Heineken N.V, has launched a mandatory takeover bid for the acquisition of up to 1,196,799,164 ordinary shares (the ‘’Offer Shares’’) from the other shareholders of Champions Breweries Plc. The Dutch giants made the offer through its wholly-owned subsidiary, Raysun Nigeria Limited.

This is according to a recent notice signed by the Chairman of Champions Breweries Plc., Dr Elijah Akpan, and filed with the Nigerian Exchange Limited (NGX).

According to the disclosure, the mandatory take-over is being effected in accordance with the directives of the regulator subject to the provisions of Section 131, Part XII of the Investment and Securities Act, No. 29, 2007 (as amended) and Rule 445 of the Securities and Exchange Commission (“SEC”) Rules and Regulations, 2013 (as amended).

Recall that in January 2021, Raysun Nigeria Limited had acquired over 1.9 million shares of the local brewer- Champion Breweries at N2.60 per share, totalling N4.95 billion. The transaction helped to raise the ownership stake of Raysun from about 60.5% recorded as of 31st of December, 2020 to 84.7% in January 2021. The deal gave Raysun the leverage to launch a takeover bid.

Subsequently, on 10th of May 2021, the Board of Raysun granted approval for a take-over offer to be made to all the other remaining shareholders of the Company other than Raysun, for the acquisition of the Offer Shares representing 15.3% of the total issued and fully paid-up share capital of the Company.

Additionally, it is imperative to note that Raysun has received the Securities and Exchange Commission’s (SEC) authority to proceed with the Offer and will file the offer document with the regulator, for registration purpose. Following the registration, Raysun will make a tender for the Offer Shares, which the Shareholders may either accept or turn down.

What you should know:

  • Analysts observed that the recent move triggered a buy momentum in favour of Champions Breweries Plc shares which posted a 10% gain today. The company share price gained 23 kobo today, after it closed at N2.53 per share, up from N2.30 the previous day.
  • Champion Breweries was incorporated on 31st of July, 1974 and commenced operations about two years later- in 1976. The company is involved in the brewing, packaging and marketing of alcoholic and non-alcoholic drinks in Nigeria. In 2011, Montgomery Ventures Inc (Panama) sold a 57% equity stake in Champion Breweries to Consolidated Breweries which in turn was bought in 2013 by Raysun Nigeria Limited, a wholly-owned subsidiary of Heineken. Since then Heineken holds indirectly a majority equity stake in Champion Breweries Plc.










Heineken B.V elects to receive scrip dividend of additional 40.56m Nigerian Breweries Shares.

Heineken Brouwerijen B.V, a substantial shareholder in the Nigerian Breweries Plc, has elected to receive its final dividend for the period ended 31st of December 2020, in form of additional 40.56 million shares of the latter.

This is according to an official notice signed by the company’s secretary, Uaboi Agbebaku and made available on the website of the Nigerian Exchange Group Limited (NGX).

Recall that in April this year, the Nigerian Breweries Plc announced the ‘Scrip Dividend Election Scheme’, an option that gives qualified shareholders the opportunity to choose to receive their final dividends in the form of new ordinary shares of the company instead of cash.

The Scrip Dividend Election Scheme permits qualified shareholders to increase their stake in the company by acquiring new ordinary shares without paying transaction fees.

In light of the above, Heineken Brouwerijen B.V elected to receive 40,555,281 units of Nigerian Breweries Shares at a reference share price of N47.75 per unit. The reference share price was calculated using the 10-day average closing share price of the company’s traded shares starting on the 11th of March, 2021.

What you should know:

  • Nigerian Breweries Plc had earlier reported a profit after tax of N7.53 billion in FY 2020, indicating a decline of about 54.3% when compared with the amount declared in similar period of 2019. In line with the decreased earnings, the proposed final dividend of the company declined from N1.51 as at FY 2019 to 69 kobo in FY 2020.
  • Heineken Brouwerijen B.V holds the highest stake in the Nigerian Breweries Plc. As at 31st of December 2020, the former holds about 37.94% of the latter’s issued and fully paid-up shares.
  • Additionally, it is imperative to note that the recent action will help Heineken Brouwerijen B.V tighten its grip on the Nigerian Breweries by an additional 1.34%.

In case you missed it:

Nairametrics had earlier reported that Nigerian Breweries Plc is set to pay Heineken BV a mega dividend of about N2.9 billion.