After Declaring N100m Loss, 86.5% Stake in Champion Breweries Plc to be Acquired by EnjoyCorp

After Declaring N100m Loss, 86.5% Stake in Champion Breweries Plc to be Acquired by EnjoyCorp

  • EnjoyCorp Limited has struck a deal to buy Heineken B.V.'s shares in Raysun Nigeria Company Limited
  • Raysun Nigeria controls 86.5% of Champion Breweries Plc, a regional brewer trading on the Nigerian Exchange Limited
  • According to a statement on the Nigerian exchange, the transaction is subject to regulatory approval journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

A deal has been reached by EnjoyCorp Limited, a holding company for food, beverage, and hospitality brands, to purchase all of Heineken B.V.'s shares in The Raysun Nigeria Company Limited.

Beer company
Champion Breweries' third quarter financial statement showed that the company reported a loss after tax of N100 million. Photo Credit: JohnnyGreig
Source: Getty Images

Champion Breweries Plc, a regional brewer traded on the Nigerian Exchange Limited, is owned by the Raysun to the tune of 86.5%.

Champions Breweries made this announcement in a statement posted on the Nigerian Exchange.

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Subject to receiving all regulatory clearances, the parties anticipate closing the proposed transaction in the second quarter of 2024.

EnjoyCorp plans to maintain Champion Breweries Plc's listing on the NGX, according to the announcement.

It further stated that Heineken will help Champion Breweries guarantee a seamless handover of ownership for an entire year following the deal's closing.

With the proposed acquisition, EnjoyCorp will strengthen its long-term commitment to the African customer by making a strategic foray into the beverage sector.

As a result of the deal, EnjoyCorp will integrate Champion Breweries as an anchor subsidiary and acquire a controlling position in the company.

Company ownership

Champion Breweries Plc was established in Nigeria on July 31 1974, as a state-owned commercial enterprise known as South East Breweries Ltd.

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It commenced brewing operations in 1976 and later changed its name to Cross River Breweries Ltd.

While ownership structure has changed over the years, Champion Breweries Plc is today under the technical supervision of its controlling shareholders, a global beverage giant, Heineken NV.

In January 2021, Heineken increased its stake to 85% while the Akwa Ibom State Government and the Public took 10% and 5% of the shares, respectively.

Recent financial report

Meanwhile, the firm's 2023 third-quarter financial statement showed that the company reported a loss of N100 million after tax.

This is despite an improvement in revenue from N2.38 billion to N2.66 billion. The cost of sales increased massively to N1.36 million, wiping more than half of the revenue year on year.

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