Champion Breweries Plc to issue bonus shares

Champion Breweries Plc (NGX: CHAMPION) is set to issue a share bonus to its shareholders.

The Akwa Ibom State based brewer disclosed this in an announcement released on Friday to the Nigerian Exchange Limited.

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In the document seen by Investogist, the Directors of the company proposes a bonus of 1 (one) new share for every 7 (seven) share held.

To qualify for the bonus share, a Shareholder must have share(s) of Champion Breweries Plc at the end of trading on Friday, May 10, 2024.

Champion Breweries Plc has 7,829,496,464 outstanding shares, and a market capitalization of ₦28.81 billion. At the end of trading on Tuesday, the share price of the brewer stood at ₦3.68.

Shareholders of the company will approve the share bonus at the 48th Annual General Meeting of Champions Breweries Plc to be held by proxy on Tuesday 21st May 2024.

They will be asked to consider and if thought fit, pass the following resolution as an ordinary resolution of the Company;

That the following proposals by the Directors in connection with the 2023 financial year be and are hereby approved:

(a) “That 559,249,714 unallocated and unissued ordinary shares of 0.50 kobo each in the authorized share capital of the Company be and are hereby allotted to shareholders whose names appear in the Register of Members of the Company as at the close of business on May 10, 2024, based on a ratio of one (1) ordinary share for every seven (7) ordinary shares held, to be financed with Five Hundred & Nineteen Million (N519,100,000.00) from the Share Premium Account of the Company and Forty Million, One Hundred Thousand Naira (N40,149,714.00) from the retained earnings of the Company.

(b) That upon completion of the process for the issuance of the 559,249,714- bonus share, and in compliance with Section 124 of the Companies and Allied Matters Act. No. 3 of 2020 (as amended) and the Companies Regulations 2021, the shareholders hereby approve the cancellation of the remaining 26,002,286 unissued shares of the Company and authorize the Directors to take all such lawful steps as may be required by statute and/or regulations for implementing the cancellation of the Company’s unissued shares.

(c) That the Directors be and are hereby authorized to take all such lawful steps, pass all requisite resolutions and do all such other lawful acts and/or things as may be necessary for and/or incidental to giving effect to the resolution above; and all prior lawful steps taken by the Directors in the above regard be and are hereby ratified.

To consider and if thought fit, pass the following resolution as an ordinary resolution of the Company.

a. That after the cancellation of all of the unissued shares in the capital of the Company by the resolution above, Clause 5(a) of the Memorandum of Association of the Company be amended as necessary to reference only the issued shares in the share capital of the Company.