The number 1 brewery in Nigeria, Nigerian Breweries and the number 3 Consolidated Breweries announced plans for a merger earlier in the year. The merger was approved a few months ago by SEC and now the shareholders are set to vote on December 4th 2014 to approve the deal.
Heineken both shareholders of Nigerian Breweries and Consolidated Breweries respectively have decided to abstain from the vote they avoid conflict of interest since they instigated the deal. Here is an excerpt of a press release from them.
While Heineken as shareholder of these two companies has the right to vote and is in favour of the merger, Heineken has decided not to vote, avoiding any possible doubts on Heineken’s integrity/conflicts of interest in this deal. Heineken’s decision will give the minority shareholders of both companies sole discretion as to whether to approve the proposed merger. Heineken N.V is the majority shareholder in both companies and its share ownership gives it a right to vote on the transaction like every other shareholder.
However, Heineken has informed both companies that it does not intend to exercise this right to vote. Heineken’s decision will give the minority shareholders of both companies sole discretion as to whether to approve the proposed merger. If the shareholders approve the merger we expect that merger will be completed in January 2015. Until all the statutory processes are completed, both companies will continue to operate separately.”
