Champion Breweries Share Price Jumps after Takeover Notice
Champion Breweries Plc, one of the leading beer producers in Nigeria share price jumps by about 50% after the takeover notice, thus raised the stock market valuation of the company in the last 7 trading sessions.
The company’s share price opened early on Thursday at N3.05 from N2.05 low in the last seven trading sessions, before the announcement.
From October 11 when the company informed the Nigerian Exchange Limited and the investing public of the proposed mandatory take-over by Raysun Nigeria Limited to acquire up to 1,196,799,164 ordinary shares from the other shareholders of Champion Breweries Plc, the share price has increased by 48 kobo.
Champion Breweries said the mandatory take-over is being effected in accordance with the directives of the regulator subject to the provisions of Section 131, Part XII of the Investment and Securities Act, No. 29, 2007 (as amended) and Rule 445 of the Securities and Exchange Commission Rules and Regulations, 2013 (as amended).
Accordingly, on 10 May 2021, the Board of Raysun granted approval for a take-over offer to be made to all the other shareholders of the Company other than Raysun, for the acquisition of the Offer Shares representing 15.3% of the total issued and fully paid-up share capital of the Company, it said.
It informed Nigerian Exchange that Raysun has received the SEC’s authority to proceed with the Offer and will file the offer document with the SEC for registration.
Following the registration, Raysun will be making a tender for the offer shares, which the shareholders may accept at their discretion, it added.
In the second-quarter earnings season, Champion Breweries became profitable after a loss sustained a year earlier. The company’s sales expanded more than 73% to N2.469 billion from N1.427 billion in the comparable period.
Profit settled at N233.3 million from loss sustained in the previous year. Champion Breweries recorded a N18.3 million loss after tax at the end of the second quarter in 2020 amidst the economic lockdown.
The first half result shows that total sales N4.844 billion, an increase of 44% above N3.374 billion it delivered in the first half of 2020. Recording a significant jump, Champion Breweries profit after tax printed at N445.235 million in the period as against N120.107 million in the comparable period in 2020.
Its shareholders’ position also witnessed a jump as total equity printed at N8.448 billion from N8.042 billion in the comparable period. This was driven balance sheet carrying value accumulated gain of N352.773 million. #Champion Breweries Share Price Jumps after Takeover Notice