Heineken buys 3.3m additional units of NB shares

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Heineken Brouwerijen B.V, the major shareholder of the largest brewer in Nigeria, has purchased 3.3million units of additional Nigerian Breweries shares. This was disclosed by the company in a notification sent to the Nigerian Stock Exchange (NSE).

According to the notification, which was signed by the Company’s Secretary, Uaboi G. Agbebaku, the purchase was made on the bourse over three transactions on the 8th, 9th and 11th of September.

This disclosure is a regulatory requirement that must be reported to the Nigerian Stock Exchange, especially when a major shareholder or director of a publicly quoted company purchases shares in the company they own.

The analysis of these transactions indicates that the purchase consideration for the 3,354,227 additional units of Nigeria Breweries shares at an average price of N41.16 per unit is put at N138 million.

This purchase and previous purchases further cement Heineken Brouwerijen B.V’s status as a major shareholder; the company has accumulated a total of 11,074,463 since 30th June.

As of June 30th, when Nigerian Breweries released its Half-year financial results and reviewed its shareholding pattern, the company had exactly 7,996,902,051 outstanding shares, with Heineken Brouwerijen B.V being the majority shareholder with 3,019,363,804 units, which amount to 37.76% of the total shares of the company outstanding.

Nigerian Breweries was affected by the disruption in the global and domestic demand and supply chain, as profit after tax of the largest brewer dropped by as much as 58per cent, at the back of the adverse impact of the sharp contraction in economic activities.

The knock-on effect of the COVID-19 lockdown, which affected the trade segment of the business, affected the company sales and this triggered the 11% drop in revenue in the first half of the year.