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Heineken raises N3.06b for full takeover of Champion Breweries

Heineken B.V, the majority core investor in Nigerian Breweries Plc and Champion Breweries Plc, may soon launch a full takeover bid for minority shares in Champion Breweries after the global breweries giant closed a N4.95b deal to increase its majority equity stake in Champion Breweries to 84.97 per cent.

Transaction details and regulatory filings at the Nigerian Stock Exchange (NSE) showed that Heineken, through its wholly-owned Nigerian subsidiary, Raysun Nigeria Limited, acquired N4.95 billion shares from local investors to increase its controlling equity stake in the Akwa Ibom State-based Champion Breweries. A total of 1.90 billion ordinary shares of 50 kobo each of Champion Breweries were crossed to Raysun Nigeria Limited at N2.60 per share through the negotiated window of the NSE. The new transaction represents 24.27 per cent of the issued share capital of Champion Breweries. Prior to the latest acquisition, Heineken, through Raysun Nigeria Limited, held 60.7 per cent majority equity stake in Champion Breweries.  Akwa Ibom State held 10 per cent equity stake while other Nigerian shareholders held 29.3 per cent equity stake. Market sources said the new transaction and increase in majority equity stake to 84.97 per cent may trigger the Mandatory Tender Offer (MTO) clause of the capital market and lead to free float deficiency.