Business

Champion Breweries Gets Shareholder Approval to Raise ₦20bn for Expansion

Published

6 days ago

Dec 6, 2024.

Adedara

Champion Breweries Gets Shareholder Approval to Raise ₦20bn for Expansion

Champion Breweries Plc has received shareholder approval to raise ₦20 billion to expand its operations and boost growth. The decision was made at an extraordinary general meeting, the company announced on Thursday.

The funding plan includes issuing up to 1.58 billion ordinary shares to meet the Nigerian Exchange Limited’s (NGX) free float requirement. This move aims to improve market liquidity, finance infrastructure projects, increase production capacity, and enhance efficiency.

Additionally, the company plans to launch a ₦15 billion bond program and a ₦5 billion Series 1 bond issuance through a funding vehicle. These bonds will provide the financial stability needed for long-term growth and operations.

Champion Breweries Gets Shareholder Approval to Raise ₦20bn for Expansion

Champion Breweries Chairman, Imo-Abasi Jacob, called the approvals transformative, stating;

“This is a bold step as we prepare for the next phase of growth. With shareholder support, we can improve capacity, meet regulations, and deliver greater value to stakeholders.”

Managing Director and CEO, Inalegwu Adoga, echoed this sentiment, highlighting the importance of the funding.

“This is a historic moment for us. These steps will ensure regulatory compliance, improve operations, and create growth opportunities,” he said.

The company hinted at these plans in October, revealing its intention to issue new shares to address its free-float deficiency on the NGX.

With the approved ₦20 billion funding, Champion Breweries aims to strengthen its market presence, improve operational efficiency, and deliver lasting value to its shareholders and the wider community.

This move marks a significant step in the brewery’s journey to achieve long-term stability and growth in Nigeria’s competitive beverage market.

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