The Management of Champions Breweries Plc has disclosed that a major shareholder of the company, The Raysun Nigeria Limited, has purchased additional shares of the brewery company, worth N4.95 billion.
This disclosure is contained in a notification of share dealing by insiders, issued by the Company Secretary, Chief Tosan Atle Aiboni.
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- The Raysun Nigeria Limited purchased 1,903,609,538 ordinary shares on 7 January 2021 on the floor of the Nigerian Stock Exchange, at a price of N2.60 per share.
- This puts the total consideration for the shares purchased by the major shareholder at N4,949,384,798.80
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Why this matters
Dealings by insiders of listed companies are corporate actions to be disclosed, as required by the Nigerian Stock Exchange, which aids transparency.
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The purchase of the shares by The Raysun Nigeria Limited cements the position of the company as a substantial shareholder of the company and shows its confidence in the long-term fundamental strength of the company in 2021 and beyond.
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What you should know
- Champions Breweries Plc is yet to comply with the free float requirements of Nigeria’s Stock Exchange (NSE).
- In a bid to ensure compliance by the company, the Nigerian Stock Exchange (NSE) in 2019 granted the Company additional two (2) years grace period to comply with the 20% free float requirements of the Exchange. This extension was subject to the Company holding a “facts behind the figures” session to brief the market of its plans to cure its free float deficiency and submitting quarterly compliance reports to the Exchange.
