EnjoyCorp Limited, a holding company specializing in food, beverage, and hospitality brands, has agreed with Heineken B.V. to acquire 100% of its shareholding in The Raysun Nigeria Company Limited.
The Raysun Nigeria Company Limited, in turn, holds an 86.5% stake in Champion Breweries Plc, a prominent regional brewer listed on the Nigerian Exchange Limited (NGX).
This was contained in the company’s notice to the Nigerian Exchange Limited and the investment community seen by Nairametrics.
According to the statement signed by Mr Imo-Abasi Jacob Chairman, Champion Breweries, the proposed transaction is contingent upon obtaining necessary regulatory approvals, with both parties anticipating closure in the second quarter of 2024.
Recommended reading: Champion Breweries Plc appoints Imo-Abasi Jacob as Director/Acting Chairman
EnjoyCorp intends to maintain Champion Breweries Plc’s listing on the NGX.
Following the completion of the transaction, Heineken will provide continued support to Champion Breweries for twelve months to facilitate a seamless transition of ownership.
This acquisition signifies EnjoyCorp’s strategic foray into the beverage category, underscoring the company’s enduring commitment to serving the African consumer market.
The transaction will result in EnjoyCorp taking a controlling stake in Champion Breweries, integrating it as an anchor subsidiary.
What you should know
Champion Breweries Plc for the first half of 2023 reported a turnover of N5.705 billion, down by 13.23% from N6.576 billion reported the previous year.
Profit after tax for the 6 months was N29.073 million, down by 97.3% from N1.076 billion reported the previous year.
Earnings per share of the Company is less than 1 kobo.
At the share price of N3.4, the P/E ratio of Champion Breweries Plc stands at 915.64x with an earnings yield of 0.11%.
Nairametrics reported recently that the Board of Directors of Champion Breweries Plc has announced the appointment of Dr Inalegwu Adoga as the Managing Director/Chief Executive Officer of Champion Breweries Plc, Uyo.
This was contained in the company’s notice to the Nigerian Exchange Limited (NGX), obtained by Nairametrics.
The statement signed by Dr Imo-Abasi Jacob, the company Chairman noted that the appointment was effective on December 1, 2023.
