Champion Breweries Plc is seeking shareholders’ approval to transfer its brewing and beverage investments to a new listed parent company, Champion Brands Plc, as it positions for expansion into more African markets.
The proposed restructuring will give investors exposure to the group’s wider beverage portfolio through a single holding company, following its expansion beyond brewing into other beverage categories.
Under the proposed Scheme of Arrangement announced on Wednesday, Champion Brands Limited will be converted into a public limited liability company and listed on the Nigerian Exchange Limited, while Champion Breweries will become its wholly owned subsidiary and be delisted.
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The arrangement provides for a one-for-one share exchange, meaning existing shareholders will receive one fully paid ordinary share in Champion Brands for every share held in Champion Breweries.
The exchange covers 11,323,611,233 ordinary shares and will not require shareholders to make additional payments. Their proportionate ownership in the group will also remain unchanged.
The new holding company will own both Champion Breweries and enJOYbev B.V., the company behind the Bullet beverage portfolio, whose acquisition expanded the group’s presence to 14 African markets.
Champion Breweries said the restructuring was designed to reflect its transition from a Nigerian brewing business into a multi-category beverage group with wider regional ambitions.
The company said the proposed structure would provide a clearer corporate identity, improve capital allocation and create room for expansion into new products, beverage categories and markets.
Chairman of Champion Breweries, Imo-Abasi Jacob, said the move would provide the corporate framework needed to pursue the group's long-term growth plans.
He said the company intended to strengthen its existing brands, develop new products and explore opportunities in additional markets.
Jacob added that the restructuring would not change shareholders’ proportionate ownership and that Champion Brands would be subject to the governance and disclosure requirements applicable to companies listed on the NGX.
He said the board had unanimously recommended that shareholders approve the proposal.
The Managing Director and Chief Executive Officer, Malolan Sampath, said the restructuring would not disrupt the group's existing operations, brands, employees, customers or suppliers.
Champion Breweries will continue its brewing operations in Uyo, Akwa Ibom State, producing Champion Lager and Champ Malta, while the group pursues its broader expansion strategy.
The company said shareholders would automatically receive their new shares once the arrangement takes effect, subject to the Scheme's implementation.
The proposal is, however, subject to shareholders’ approval and the necessary regulatory clearances.
Champion Breweries said the Scheme Document, containing details of the restructuring and procedures for voting and appointing proxies, was available to shareholders through its registrars, Africa Prudential Plc.
The company expects the restructuring to be completed in the first quarter of 2027.
Its shares will remain on the NGX until the Scheme is implemented, after which Champion Brands will become the group's listed parent company.
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