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.
- 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
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.
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.
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.