Champion Breweries stocks are up by more than 58% in just six trading sessions as buying interests by investors continue to prop the shares of the company upon the expectation of a mandatory takeover by Heineken.
Findings by Nairametrics at the close of trading today, 25th of January 2021, revealed that the share price of Champion Breweries has increased from N1.35 to N2.14 in just six trading sessions on the NSE.
This indicates that the shares of Champion Breweries Plc increased by 58.52% between the close of trade on Friday 15th of January, and Monday 25th January 2021.
It is essential to understand that buyers dominated trading activities on the company’s shares on the floor of the Nigerian Stock Exchange as the market price of the company’s shares went up by 9.74%, less than 20 minutes after the NSE opened, as buying pressure by investors continue to push the shares of the company higher.
The drive behind the increase in Champion Breweries shares
Investors’ buying interests in Champion Breweries Plc shares, was said to have been triggered by the expectation of a mandatory takeover by Heineken through its Special Purpose Entity, Raysun Nigeria Limited, which investors believe would birth a potential merger with the largest Brewer in the country, Nigerian Breweries Plc.
Recall that Nairametrics reported that, Raysun Nigeria Limited, a Special Purpose Entity (SPE) wholly-owned by Heineken Brouwerijen B.V., acquired 1,903,609,538 additional shares of the brewery company, worth N4.95 billion on 7 January 2021, at a price of N2.60 per share.
The acquisition took Heineken’s total stake in Champion Breweries to 6,633,043,538 or 84.72% (indirectly).
What you should know
- Since the news of Heineken’s indirect acquisition of additional shares in Champion Breweries through Raysun Nigeria Limited was disclosed on the 8th of January 2021, shares of the company have appreciated by 110%.
- The YTD gains of the shares of Champion Breweries on NSE, at the close of trading activities today currently stands at 148.84%.