Champion Breweries Jumps by 11% on Acquisition Notice
Champion Breweries Plc gained about 11% in the stock market as investors reacted positively to the company acquisition notice. Trading data obtained from the Nigerian Exchange showed that the brewer share price surged to N18.80 on Friday as value hunters took positions ahead of rush hours.
The company share price was, however, volatile throughout the week, though it eventually settled stronger than its opening price of N16.95. Champion Breweries touched N19.74 during the week before selling heat melted the stock price on increased activity by sell side actors.
On Friday close, the Nigerian Exchange valued Champion Breweries Plc.’s 8.947 billion shares outstanding at N168,222,324,029.2, a significant discount of 12.52% to its highest value in 52 weeks.
In a regulatory filing, Champion Breweries Plc announced it has entered into an agreement for the acquisition of all brand assets and intellectual property of the Bullet range of ready-to-drink (RTD) alcoholic and energy beverages from Sun Mark International Limited.
The transaction is structured as an asset carve-out, with the assets to be held in a newly incorporated company in the Netherlands, the company said in a notice submitted on the Nigerian Exchange.
Post-acquisition, Champion Breweries Plc will hold a majority interest in the new business, while Vinar N.V, a Belgian entity and the majority shareholders of Sun Mark, will hold a minority stake.
Bullet is currently present in over 14 African markets, including Nigeria, Cameroon, Ghana, Ivory Coast, DRC, and Tanzania. The Bullet Black RTD is currently the leading RTD brand in Nigeria, while the Bullet Blue energy drink ranks amongst the top six brands. #Champion Breweries Jumps by 11% on Acquisition Notice CBN Sells $166m to Banks, FX Forward Contracts Depreciate
