Heineken Units in Nigeria to Exchange Champion Breweries Stake

Heineken NV (HEIA), the world’s third-largest brewer, has agreed to buy a 57 percent stake in Nigeria’s Champion Breweries Plc (CHAMPION) from Consolidated Breweries Plc, which is majority owned by the Dutch beermaker.

Raysun Nigeria, a wholly owned Heineken unit, will acquire 513 million shares shares from Consolidated Breweries subject to regulatory approval, Amsterdam-based Heineken said in a statement dated June 23, which was received by e-mailed today.

The reorganization “will optimize Consolidated Breweries’ operations by reducing excess production capacity it no longer needs,” Heineken said in the statement. Raysun can adequately meet loss-making Champion Breweries’ financing and restructuring needs, the company said.

Champion posted a loss after tax of 758 million naira ($4.7 million) for the six months through June, compared with loss of 806 million a year earlier, it said in a July 31 filling to the Nigerian Stock Exchange. Revenue rose to 327 million naira from 281 million naira. The stock declined 10 percent to 15.68 naira as of 1:22 p.m. in Lagos, the commercial capital. It has more than tripled this year, compared with a 34 percent rise in the Nigerian Stock Exchange All-Share Index. (NGSEINDX)

Consolidated Breweries, in which Heineken owns just over 50 percent, according to its website, acquired the stake in Champion from Montgomery Ventures Inc.

To contact the reporter on this story: Emele Onu in Lagos at eonu1@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net

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