Champion Breweries holds signing ceremony for N15.9bn Rights Issue

Champion Breweries Plc has held a formal signing ceremony to advance its plan to raise N15.9bn through a Rights Issue to existing shareholders.

A statement from the firm on Sunday said the ceremony, held on Friday, marks a significant milestone in the company’s ongoing capital-raising programme, which received shareholder approval at its Extraordinary General Meeting held on July 24, 2025. The Rights Issue represents the first phase of a two-step capital raise, with a Public Offer scheduled to follow shortly.

According to the company, the funds to be generated from the Rights Issue will be used to finance the strategic acquisition of the Bullet brand. The acquisition is a critical element of Champion Breweries’ domestic and international growth ambitions, allowing it to strengthen its presence across key markets and expand its product portfolio.

Under the terms of the offer, 994,221,766 ordinary shares of 50 Kobo each will be issued at N16 per share. The structure of the offer provides one new share for every nine existing shares held by eligible shareholders. The Qualification Date for determining which shareholders are entitled to participate in the Rights Issue was set for September 4, 2025.

Speaking during the signing ceremony, the Managing Director and Chief Executive Officer of Champion Breweries Plc, Dr Adoga Inalegwu, described the Rights Issue as a transformative step for the company. He noted that the acquisition of the Bullet brand would significantly enhance the brewery’s long-term competitiveness and position it for expansion beyond the Nigerian market.

“This Rights Issue marks a turning point for Champion Breweries. Completing the Rights Issue for the Bullet acquisition gives us the scale and strength to compete beyond Nigeria, unlock high-margin growth, and build a platform that resonates internationally,” he said.

Inalegwu emphasised that the timing of the offer is crucial, as the company is determined to complete the acquisition before the end of the year. To achieve this objective, he urged shareholders to take part in the offer promptly, stressing that early participation would be essential to ensuring the success of the transaction. The company reiterated that the acquisition is expected to accelerate its transition into a more competitive and diversified player in the beverage industry, both within and outside Nigeria. The transaction is being managed by a consortium of reputable issuing houses. Rand Merchant Bank Nigeria Limited serves as the Lead Issuing House for the Rights Issue. The Joint Issuing Houses include FBNQuest Merchant Bank Limited, CardinalStone Partners Limited, Investment One Financial Services Limited, and CFG Maynard Limited. Together, these institutions will oversee the structuring, coordination, and execution of the capital raise to ensure a seamless subscription process for shareholders.

Champion Breweries noted that comprehensive information regarding the Rights Issue—including allotment procedures, subscription timelines, and payment guidelines—will be provided in the Rights Circular. Shareholders and potential investors are strongly encouraged to study the Circular carefully to understand their rights, obligations, and available options. The company also advised all participants to seek professional financial counsel to make informed decisions during the subscription period.

With this Rights Issue, Champion Breweries signals its commitment to strengthening its operational capacity and consolidating its market position. The acquisition of the Bullet brand is expected to provide the company with access to fast-growing product segments and offer new opportunities for revenue diversification.

As the company moves ahead with its capital-raising efforts, stakeholders anticipate that the infusion of funds will support future expansion initiatives and solidify Champion Breweries’ standing within the regional beverage industry.

The company reaffirmed that the Rights Issue is only the first step in a broader capital-raising agenda. The second phase—a Public Offer—will be launched following the completion of the Rights Issue, marking another important milestone in Champion Breweries’ long-term growth strategy.

Source: https://punchng.com/champion-breweries-holds-signing-ceremony-for-n15-9bn-rights-issue