Champion Breweries Plc has proposed a restructuring that may set up Champion Brands Limited as the brand new guardian firm of the group, reflecting its evolution right into a broader, multi-category African beverage enterprise.
Under the proposed Scheme of Arrangement, Champion Brands Limited will likely be re-registered as a public restricted legal responsibility firm, Champion Brands Plc, and turn into the group’s new guardian firm listed on Nigerian Exchange Limited (NGX).
Champion Breweries will turn into its subsidiary and be delisted, whereas enJOYbev B.V., whose portfolio consists of the Bullet vary of drinks, may also turn into a direct subsidiary of Champion Brands.
Chairman of Champion Breweries, Imo-Abasi Jacob, in a press release, stated: “Our ambitions prolong past the companies and markets we serve right now. We need to strengthen our present manufacturers, develop new merchandise and pursue alternatives in new markets. The proposed construction is designed not only for the enterprise we’ve right now, however for the group we intend to construct over the long run.
“We believe this is the right next step for Champion and its shareholders. The Scheme changes the group’s corporate structure, not shareholders’ proportionate ownership. Champion Brands, once listed, will be subject to the governance and disclosure requirements applicable to NGX-listed companies. The Board unanimously recommends that shareholders vote in favour of the Scheme.”
Managing Director/CEO, Malolan Sampath, in a press release, added that: “The group’s operations, manufacturers, staff, prospects and suppliers are unaffected by the Scheme. Champion Breweries will proceed producing
“Under the Scheme, existing shareholders will receive one Champion Brands share for every Champion Breweries share held, preserving their proportionate ownership. The restructuring remains subject to the necessary approvals.”
The firm is proposing one-for-one share alternate: “The 11,323,611,233 ordinary shares of Champion Breweries held by Scheme Shareholders will be exchanged for an equivalent number of fully paid ordinary shares in Champion Brands. Shareholders will retain their proportionate ownership without any additional payment,” the corporate stated within the assertion.
New group construction
Champion Breweries will turn into a wholly-owned subsidiary of Champion Brands. Champion Breweries’ shareholding in enJOYbev B.V. may also be transferred to Champion Brands, leading to each Champion Breweries and enJOYbev B.V. changing into direct subsidiaries of Champion Brands.
Transition of Champion Brands to a brand new publicly listed guardian
Following the implementation of the Scheme, Champion Breweries’ shares will likely be delisted from NGX, and Champion Brands, following its re-registration as a public restricted legal responsibility firm; it can turn into the group’s publicly listed guardian firm, topic to the mandatory regulatory approvals.
Champion Breweries will proceed its brewing operations in Uyo, Akwa Ibom State, producing Champion Lager and Champ Malta.
Champion Breweries has advanced from a Nigerian brewing enterprise right into a broader, multi-category beverage group. Its current acquisition of enJOYbev B.V. introduced the Bullet portfolio into the group, increasing its product providing and geographic presence throughout 14 African markets.
The proposed restructuring displays this evolution. The Board believes {that a} holding-company construction is best suited to the size and ambitions of the expanded group, providing three principal strategic benefits.
First is a clearer group id and funding proposition. Champion Brands will characterize the broader beverage group as its listed guardian firm, giving buyers a clearer view of the group’s portfolio and the companies underpinning its progress.
Champion Lager and Champ Malta in Uyo, whereas we stay targeted on strengthening our manufacturers, increasing our attain and serving our prospects.
Under the Scheme, for each Champion Breweries share held, Scheme shareholders will obtain one Champion Brands share, preserving their proportionate possession. No shareholder is diluted or purchased out by way of the alternate.
The Champion Brands shares will likely be issued as totally paid. Shareholders won’t be required to make any extra fee or software to obtain them.
Shareholders personal shares within the wider group
Through Champion Brands, shareholders will maintain an curiosity within the guardian firm of each Champion Breweries and enJOYbev B.V., bringing the group’s beverage companies below one company construction.
The shareholders’ funding stays in a listed group
Champion Breweries will likely be delisted from NGX, whereas Champion Brands will turn into the group’s new publicly listed guardian firm, topic to the mandatory approvals.
A shareholder vote is required
The Scheme proceeds provided that shareholders approve it and the mandatory regulatory approvals are obtained. The Scheme is to be accomplished within the first quarter (Q1) of 2027. Shares in Champion Breweries proceed to commerce on NGX as regular pending implementation of the Scheme.
