Champion Breweries Plc plans to issue 1,579,058,099 ordinary shares to raise capital from local and international markets, a key agenda item for its Extraordinary General Meeting (EGM) slated to be held on December 4, 2024.
The announcement, signed by the Company Secretary and Legal Advisor, Chief Tosan Aiboni, was disclosed on the Nigerian Exchange (NGX) platform on November 20, 2024.
Also in the disclosure, the company announced its intention to raise up to N15 billion in additional capital, outlining plans to mobilize the funds through various channels, subject to the board’s discretion.
Providing further details, the disclosure stated:
“Notice is hereby given that an Extraordinary General Meeting (“EGM”) of Champion Breweries Plc. (the “Company”) was scheduled to be held on Wednesday, December 4, 2024, at the Oriental Hotel, 3 Lekki Road, Victoria Island, Lagos.”
What to know
- The company plans to raise capital by issuing up to 1,579,058,099 (one billion, five hundred and seventy-nine million, fifty-eight thousand, ninety-nine) ordinary shares in Nigeria and/or international markets, either as a single offering or through a series of offerings.
- Capital may be raised through various methods, such as public offerings, private placements, or rights issues, with prices determined by the board and subject to regulatory approval.
- The company’s share capital will be increased by the number of shares issued during the capital raise, based on terms set by the board.
- After the capital increase and the allotment of shares, the company’s memorandum and articles of association will be updated to reflect the revised share structure.
Additional capital raise
- Champion Breweries Plc also announced its intention to pursue a special business resolution to authorize the raising of additional capital of up to N15,000,000,000 (fifteen billion naira).
- This significant capital injection may be achieved through various instruments, including convertible or non-convertible notes, green bonds, hybrid securities, or other innovative financial tools.
- The capital raise will occur in Nigerian or international markets, or both, through public offerings, private placements, rights issues, or other methods, with terms and pricing set by the Board and subject to regulatory approvals.
The resolution, as outlined in the disclosure, states:
“That the Company be and is hereby authorized to raise additional capital of up to N15,000,000,000 (fifteen billion Naira) directly and/or indirectly by such means as the Board may deem appropriate.”
Backstory
In October, Champion Breweries hinted at its plans to raise capital through a public offer, a move aimed at meeting Nigerian Exchange (NGX) listing requirements while also fueling its growth ambitions.
During the company’s “Facts Behind the Figures” presentation on October 15, 2024, Managing Director Dr. Inalegwu Adoga outlined the strategy, stating:
“We intend to issue new shares to the public to achieve the required NGX free float of 20%.”
Dr. Adoga further emphasized the broader benefits of addressing the free float deficiency, explaining:
“Addressing the free float deficiency will help us raise funds to complete our current infrastructure upgrades, increase our capacity to meet existing demand, gain operational efficiency, and enhance profitability.”
This announcement follows the company’s June 2024 acquisition by EnjoyCorp, which secured an 86.4% ownership stake for the firm, while Akwa Ibom State retains 10% and the public holds the remaining 3.6%.
