Heineken has opened application list for a N3.11 billion takeover bid of minority shares in Champion Breweries, a move that may increase the controlling equity stake of the Netherlands-based Heineken in the Nigerian brewer to about 76 per cent.
Heineken, through its wholly-owned subsidiary, Raysun Nigeria Limited, plans to acquire about 1.197 billion ordinary shares of 50 kobo each or about 15.3 per cent additional stake in Champion Breweries under a mandatory takeover bid (MTO). The transaction price is N2.60 per share.
Application list for the MTO, approved by Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), opened on Monday, January 10, 2022 and will close on Monday, January 31, 2022.
The qualification date for the MTO was Friday, December 31, 2021, implying that only minority shareholders of Champion Breweries as at the close of business on December 31, 2021 can participate in the ongoing offer. Shareholders may accept the MTO at their discretion.
Heineken holds the majority equity stake in both Nigerian Breweries and Champion Breweries, which are both quoted on the NGX. Heineken, through Raysun Nigeria Limited, holds 60.7 per cent majority equity stake in Champion Breweries. Akwa Ibom State holds 10 per cent equity stake while other Nigerian shareholders hold 29.3 per cent equity stake.
Champion Breweries’ current shareholding base of 7.83 billion ordinary shares of 50 kobo each include 4.75 billion for Raysun Nigeria, 782.9 million ordinary shares for Akwa Ibom State and 2.29 billion ordinary shares for other investors.
The acquisition of the full MTO target of 1.197 billion ordinary shares will increase Heineken’s Raysun Nigeria’s shareholding from 4.752 billion shares or 60.7 per cent to 5.949 billion ordinary shares or about 75.99 per cent equity stake.