The Chairman of Champion Breweries Plc, Dr Elijah Akpan has informed the Nigerian Exchange Limited and the Investing public of a proposed mandatory take-over of the company by The Raysun Nigeria Limited.
The information was contained in a corporate action posted on the Exchange. The proposed mandatory takeover involves the acquisition of up to 1,196,766,164 ordinary shares of Champions Breweries Plc from the company’s shareholders.
On 10 May 2021, The Board of Raysun granted approval for a take-over offer to be made to all the other shareholders of the Company other than Raysun, for acquisition of the Offer shares representing 15.35% of the total issued and fully paid-up share capital of the Company.
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 making a tender for the Offer Shares, which the
shareholders may accept at their discretion.
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).
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 fulfilment of our obligation to report such matters and will continue to do so in line with the requirements of The Rulebook.
Raysun Nigeria Limited is a wholly-owned subsidiary of Heineken. In January, Heineken had raised it ownership of Champions breweries to 84.7% through Raysun Nigeria Limited, setting up the stage for a takeover bid that is currently on the way.
About the Company
Champion Breweries was established in 1974 as a publicly funded commercial enterprise under the name of South East Breweries Limited.
It began production in 1976. Later, the name was changed to Cross River Breweries Limited and thereafter to Champion Breweries.
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.
CHAMPION HAS 7,829,496,464 outstanding shares.
Share Price Movement
The Share price of Champion Breweries Plc achieved maximum gains during Tuesday’s trading session. It gained by 10.00% to close trading at N2.53.
YTD the share price has risen by 167.44%, over has achieved 158.43% gain over the past 1 year, 121.15% gain over the past 2 years, 36.90% gain over the past three years.
The Share price is still down by 12.55% over the last 5 years.
Its 52 week high is N4.13 while its 52 week low is N0.81.
Champion Breweries Plc was listed on the Nigerian Exchange on September 01, 1983, and has traded with a ticker symbol of CHAMPION.
It is very likely that post the takeover, Raysun Nigeria Limited will delist CHAMPION from the Nigerian Exchange.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur