Champion Breweries shares increase by 58% in six days

By Kayode Tokede

Champion Breweries share rose by 58per cent in six trading days as buying interests by investors continue to prop the shares of the company upon the expectation of a mandatory takeover by Heineken.

The share at the close of trading on Monday  revealed that the share price of Champion Breweries has increased from N1.35 to N2.14 in six trading sessions on the Nigerian Stock Exchange (NSE).

This indicates that the shares of Champion Breweries Plc increased by 58.52per cent between the close of trade on last Friday  and Monday.

It is essential to understand that buyers dominated trading activities on the company’s shares on the floor of the NSE as the market price of the company’s shares went up by 9.74per cent, less than 20 minutes after the NSE opened, as buying pressure by investors continue to push the shares of the company higher.

Investors’ buying interests in Champion Breweries Plc shares, was said to have been triggered by the expectation of a mandatory takeover by Heineken through its Special Purpose Entity, Raysun Nigeria Limited, which investors believe would birth a potential merger with the largest Brewer in the country, Nigerian Breweries Plc.

Raysun Nigeria Limited, a Special Purpose Entity (SPE) wholly-owned by Heineken Brouwerijen B.V., acquired 1,903,609,538 additional shares of the brewery company, worth N4.95 billion on 7 January 2021, at a price of N2.60 per share.

The acquisition took Heineken’s total stake in Champion Breweries to 6,633,043,538 or 84.72per cent (indirectly).

Since the news of Heineken’s indirect acquisition of additional shares in Champion Breweries through Raysun Nigeria Limited was disclosed on the 8th of January 2021, shares of the company have appreciated by 110per cent.