Champion Breweries proposes new listed parent company to drive expansion

Champion Breweries Plc has proposed a restructuring plan that would establish Champion Brands Limited as the new parent company for the group. This move would expand the company into a broader, multi-category African beverage business. The Scheme of Arrangement would see Champion Brands Limited re-register as a public limited liability company, known as Champion Brands Plc, and be listed on the Nigerian Exchange Limited.

Champion Breweries Plc would become a subsidiary and subsequently be delisted. Additionally, enJOYbev B.V., which possesses the Bullet range of beverages, would also become a direct subsidiary of Champion Brands. Existing shareholders will receive one Champion Brands share for every Champion Breweries share owned, preserving their proportional ownership.

The restructuring is expected to be completed in the first quarter of 2027, pending shareholder approval, Federal High Court approval, and other regulatory approvals. This shift reflects the company's transition from a Nigerian brewing business to a more diverse beverage group following the acquisition of enJOYbev B.V., which added the Bullet range of ready-to-drink and energy beverages to its portfolio.

The restructuring aims to provide a clearer investment proposition, enhance capital allocation flexibility, and enable further expansion into new products, beverage categories, and African markets. The Chairman of Champion Breweries, Imo-Abasi Jacob, stated that the proposed restructuring aligns with the group's long-term expansion plans, emphasizing the desire to strengthen existing brands, develop new products, and pursue opportunities in new markets.

The Managing Director and Chief Executive Officer, Malolan Sampath, assured that the restructuring would not impact the group's operations, brands, employees, customers, or suppliers. The transaction would change the group's corporate structure, but shareholders will maintain their proportionate investment in the listed group, with the listed parent changing from Champion Breweries to Champion Brands.

The company has made the scheme document available to shareholders through its registrar, Africa Prudential Plc, while the shares will continue to trade on the NGX until the restructuring is completed.