Champion Breweries has launched a NGN42bn (US$29.5m) public offer as the Nigerian brewer moves to finance a previously announced acquisition.
The offer, comprising 2.63bn ordinary shares priced at NGN16 each, follows regulatory approval from the Securities & Exchange Commission and the Nigerian Exchange. It marks the second stage of the company’s capital-raising programme, following a NGN15.9bn rights issue completed with existing shareholders.
Champion Breweries agreed in August to acquire energy drink brand Bullet from Sun Mark International through an ‘asset carve-out transaction’ covering the brand’s trademarks, recipes and intellectual property. Once completed, the business will be held under a newly established Netherlands-based entity, in which Champion will take a majority stake while Sun Mark’s majority shareholder, Belgian firm Vinar, will retain a minority interest.
Proceeds from the public offer and rights issue will be used primarily to fund the Bullet transaction, with remaining capital allocated to working capital and growth initiatives including route-to-market expansion, marketing, innovation and capacity development. Bullet is currently available in 14 African markets.
“The opening of our public offer is an invitation for investors to share in the next phase of Champion’s growth,” said Champion’s MD, Inalegwu Adoga. “With the Bullet acquisition, we are combining nearly 50 years of brewing heritage with a proven pan-African RTD and energy drink platform.”
In March last year, Heineken acquired the remaining 20% holding in the Distell Wines & Spirits Nigeria unit through its Nigerian Breweries subsidiary.
