Nigerian beer maker Champion Breweries is getting a new owner. The brewer said an agreement has been reached with food and beverage company, EnjoyCorp, to acquire the maker of Champion beer.
Champion Breweries, which is listed on the Nigeria Exchange, is majority-owned by the Dutch beer maker, Heineken B.V., which holds 86.4 percent through Raysun Nigeria Company Limited. The Akwa Ibom state government owns 10.06 percent in the firm.
Champion Breweries said Heineken has agreed to sell its entire shareholding to EnjoyCorp Limited, a holding company established for food, beverage and hospitality brands. The financial terms of the transaction was not made public.
The ownership of EnjoyCorp Limited was not also immediately clear. Online records show that Enjoycorp Limited was incorporated on 7 February 2024 with the registered office located in the United Kingdom.
EnjoyCorp intends to keep Champion Breweries Plc listed on the NGX, Champion said in a regulatory notice Thursday. Also, Heineken will continue to support Champion Breweries for a 12-month period after the transaction has closed to ensure a smooth transition of ownership.
The proposed transaction is subject to obtaining requisite regulatory approvals and the parties expect to close the transaction in the second quarter of 2024.
“The proposed acquisition will mark EnjoyCorp’s strategic entry into the beverage category underpinning the company’s long-term commitment to the African consumer,” Champion Breweries said.
“It will result in EnjoyCorp taking a controlling stake in Champion Breweries, integrating it as an anchor subsidiary.”
Champion reported a loss of N91 million in the first nine months of 2023, a fall from the N1.9 billion profit it made in the same duration a year earlier.
The company’s share price lost N34.9 percent in the last one year. It was N3.11 at 11.54 am Nigerian time on Thursday after the news of the takeover, the same amount it closed a day before.
About Champion Breweries
Champion Breweries’s brands include Champion lager beer, Champ Malta and Champ Malt with Butter Cookies. It also sells Champion Lager Beer with Ginger Extract and Champ Malt with Tiger Nut.
The Company also provides contract brewing and packaging services to Nigerian Breweries Plc, which is a related party within the Heineken group.
Champion Breweries was established in 1974 by then South-eastern state and began manufacturing in 1976 with a capacity of 150,000 hecto litres of Champion beer and 10,000 hecto litres of Champ Malta.
In 2014, Heineken International acquired a majority equity in the company through its subsidiary, Raysun Nigeria Limited.
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