Recently, Champion Breweries Plc informed the Nigerian Exchange Limited (NGX) and the investing public of the proposed mandatory take-over by its substantial shareholder –The Raysun Nigeria Limited (Raysun) to acquire up to 1,196,799,164 ordinary shares from the other shareholders of the company.
The Board of Raysun, the majority shareholders in Champion Breweries had on May 10, 2021 granted approval for a take-over offer to be made to all the other shareholders of the Company other than Raysun, for the acquisition of the Offer Shares representing 15.3percent of the total issued and fully paid-up share capital of the Company, according to a notice signed by Elijah Akpan, Chairman of Champion Breweries Plc.
On January 7, 2021, Raysun had on the Nigerian Exchange acquired 1.903billion units of Champion Breweries at N2.60 per share. As at December 31, 2020 The Raysun Nigeria Limited held 4.729billion units in Champion Breweries representing 60.4percent. Assets Management Nominee A/C “Y” (12.3percent), Akwa Ibom Investment Corporation (10percent), Others shareholders (17.3percent).
Read Also: Raysun set to acquire 15.3% equity stake in Champion Breweries
Champion Breweries Plc, incorporated in Nigeria as a limited liability Company on July 31, 1974 and was later converted to a public limited liability Company on September 1, 1992. The Company is involved in the brewing and marketing of Champion lager beer and Champ Malta.
It also provides contract brewing and packaging services to Nigerian Breweries Plc, a related party within the Heineken group. Champion Breweries Plc has related party relationships with its parent company, Heineken N.V. and Heineken group entities. These transactions are conducted on terms comparable to transactions with third parties, according to the company’s financial statement
The Board of Directors of Champion Breweries Plc scheduled its meeting on Thursday October 28 to review and approve the Unaudited Financial Statements of the Company for the period ended September 30, 2021, according to a recent notice at the Nigerian Exchange (NGX) Limited.
The company was able to attain a revenue growth rate of 43.6percent, from N3.37billion in H1’20 to N4.84billion in H1’21. The Brewer’s half-year financial report shows a good stand for the first half (H1) of 2021 compared with same period in 2020.
Gross profit in H1’21 increased by 59.8percent, from N1.22 billion in 2020 to N1.95 billion in 2021. Also, its earnings per share (EPS) rose from 1.53 in the first half-year of the year 2020 to 5.69 in the first half-year of the year 2021, which tends to boost shareholders confidence in the business activities of the company.
The mandatory take-over by Raysun 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).
Raysun has received the SEC’s authority to proceed with the Offer and will file the offer document with the SEC for registration. Following the registration, Raysun will be making a tender for the Offer Shares, which the shareholders may accept at their discretion.
“Further to the above and in accordance with Rule 17.5 (Part C, Issuers’ Rules) of The Rulebook of The Exchange (the “Rulebook”), we hereby notify The Exchange of the Offer in fulfillment of our obligation to report such matters and will continue to do so in line with the requirements of The Rulebook”, Champion Breweries Plc noted.
This no doubt has triggered the buy momentum in favour of the stock which as at 10.32 am on Tuesday have reached maximum 10 percent daily gain. Champion Breweries which opened for trading on Tuesday at N2.30 moved up to N2.53, gaining 23kobo.
The Company had on Friday October 1, 2021 commenced its Closed Period until 24 hours after the Unaudited Financial Statements of the Company for the period ended September 30, 2021. The closed period is the time between the completion of a listed company’s financial results and the announcing of the results to the public.
