Champion Breweries to raise N45bn

By Chukwuma Umeorah

Champion Breweries Plc has received shareholder approval to raise up to N45 billion in debt capital to support its business plans. The decision was made at the company’s Extra-ordinary General Meeting (EGM) held recently.

According to a statement filed on the Nigerian Exchange Limited (NGX) and signed by its company’s secretary/legal adviser, Tosan Alboni, Champion Breweries stated that “the capital will be raised through various instruments, including convertible and non-convertible notes, green bonds, hybrid securities, or a combination of these, either directly by the company or through a special purpose vehicle. The issuance may take place in the Nigerian or international capital markets.”

The resolution also stated that board was authorised to determine the pricing, interest or coupon rates, maturity periods, and other terms of the debt issuance through book building or any other acceptable valuation method. The fundraise may be structured as standalone issues or under a broader capital programme, subject to regulatory approvals.

Shareholders also approved a potential acquisition plan aimed at securing intellectual property rights and brand assets, either by acquiring an existing business or a special purpose vehicle. The resolution authorises the board “to negotiate, approve, execute, and deliver all necessary agreements and instruments, appoint legal and financial advisers, and take any and all actions deemed necessary, advisable, or incidental to effectuate the proposed acquisition subject to obtaining all required regulatory or other relevant approvals.”

In a related resolution, the company also received approval to issue up to 5 billion additional ordinary shares of 50 kobo each. This equity issuance may be done through public offerings, rights issues, or other methods, either as standalone or under a capital programme, and is subject to pricing determined through acceptable valuation methods.

The new share issuance is separate from and without prejudice to the capital raising approvals previously granted at the company’s general meeting held on December 4, 2024.