By Taiye Olayemi
Lagos, Jan. 9, 2025 (NAN) – In a significant move to fuel its next growth phase, Champion Breweries Plc has received the crucial green light from Nigeria’s Securities and Exchange Commission (SEC) to raise ₦42 billion through a public offer. This approval marks a pivotal step for the brewer, allowing it to proceed with the sale of 2.625 billion ordinary shares to investors at a price of ₦16 per share.
The company formally disclosed this regulatory milestone in a corporate filing with the Nigerian Exchange Ltd. (NGX), confirming that the offer is now open to both institutional and retail investors. The primary objective, as stated, is to substantially strengthen the company’s capital base for ambitious expansion.
This public offer is not an isolated event but the second and larger phase of a deliberate two-step capital-raising strategy. It follows a completed ₦15.9 billion rights issue, which was targeted at existing shareholders. The combined proceeds from both initiatives are earmarked for a transformative acquisition: the Bullet brand portfolio.
Strategic Rationale: The Bullet Brand Acquisition
The planned acquisition of the Bullet portfolio is the cornerstone of this capital raise. Bullet is recognized as a proven platform for Ready-to-Drink (RTD) and energy drinks across Africa. For Champion Breweries, a company with a heritage nearing 50 years in traditional brewing, this move represents a strategic diversification into high-growth beverage segments. As Managing Director Dr. Inalegwu Adoga stated, the combination aims to merge Champion’s brewing expertise with Bullet’s pan-African distribution and brand strength.
David Butler, Group Managing Director of enJOYcorp (Champion’s majority shareholder), provided further strategic context, highlighting the efficiency of the “asset carve-out” approach. This allows Champion to gain immediate access to foreign exchange earnings and scale rapidly in new markets without the burden of heavy greenfield investment in manufacturing infrastructure.
Use of Proceeds: Beyond the Acquisition
While the Bullet acquisition is the headline use of funds, the company outlined a broader deployment strategy for the capital. The net proceeds are also intended to:
• Support working capital requirements.
• Finance growth initiatives, including route-to-market expansion to deepen distribution.
• Fund marketing campaigns and product innovation.
• Enable capacity expansion to meet anticipated increased demand.
Offer Details and Mechanics
For potential investors, the key details are:
• Offer Price: ₦16 per ordinary share.
• Total Offer Size: ₦42 billion (2.625 billion shares).
• Subscription Window: Opens January 8, 2026, and closes January 21, 2026.
• Listing: The new shares will be listed on the Nigerian Exchange Ltd. (NGX), providing liquidity.
• Receiving Bank: Access Bank has been appointed to manage subscription funds.
Broader Market Context
This capital raise occurs within a competitive and evolving Nigerian beverage landscape. It signals Champion Breweries’ intent to not only consolidate its position but also to capture market share in the expanding non-alcoholic and energy drink categories. The success of this offer will be a key indicator of investor confidence in the company’s strategic direction and the management’s ability to execute this integration and expansion plan.
By inviting the public to participate, Champion Breweries is betting that its vision for a diversified, pan-African beverage conglomerate resonates with the investment community. The coming weeks will reveal the market’s verdict on this ₦42 billion ambition. (NAN) (www.nannews.ng)
PTB/ KTO
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Edited by Kamal Tayo Oropo
