Champion Breweries Plc has unveiled plans to restructure its corporate operations, with a proposal to establish Champion Brands Limited as the new holding company of the group as it expands beyond brewing into a broader African beverage business.
The proposed restructuring will see Champion Brands Limited converted into a public limited liability company, Champion Brands Plc, and listed on the Nigerian Exchange Limited (NGX), replacing Champion Breweries as the group's publicly quoted parent company.
Under the Scheme of Arrangement, Champion Breweries will become a wholly owned subsidiary of Champion Brands and subsequently be delisted from the NGX. Similarly, enJOYbev B.V., whose portfolio includes the Bullet range of ready-to-drink and energy beverages, will become a direct subsidiary of the new holding company.
The company disclosed the proposed arrangement in a statement, explaining that its existing shareholders would receive one fully paid ordinary share in Champion Brands for every Champion Breweries share held.
The exchange will cover all 11.32 billion ordinary shares currently held by shareholders, ensuring that their existing proportionate ownership in the group remains unchanged. The transaction will not require additional payments or result in dilution of shareholders' interests.
Following the restructuring, Champion Breweries' ownership of enJOYbev B.V. will also be transferred to Champion Brands, bringing both businesses directly under the new parent company.
The company said the proposed arrangement reflected its transformation from a Nigerian brewing business into a diversified beverage group, following its acquisition of enJOYbev B.V., which introduced the Bullet range into its portfolio.
The acquisition expanded the group's product offerings and geographical reach to 14 African countries, creating opportunities for further growth across the continent.
According to the company, the holding-company structure is expected to provide a clearer investment proposition, improve capital allocation across its businesses and offer greater flexibility to expand into new products, beverage categories and African markets.
Commenting on the proposal, Chairman of Champion Breweries, Imo-Abasi Jacob, said the restructuring was designed to support the group's long-term ambitions and accommodate its expanding business interests.
“Our ambitions extend beyond the businesses and markets we serve today. We want to strengthen our existing brands, develop new products and pursue opportunities in new markets,” Jacob said.
He explained that the proposed transaction would reposition the group's corporate structure without changing the proportionate ownership of existing shareholders.
Also speaking, the Managing Director and Chief Executive Officer, Malolan Sampath, assured stakeholders that the restructuring would not disrupt the group's existing operations or affect its brands, employees, customers and suppliers.
He noted that Champion Breweries would continue manufacturing its flagship products, Champion Lager and Champ Malta, at its brewing facility in Uyo, Akwa Ibom State.
The company stated that shareholders would retain their investments in a publicly listed group, although the listed parent company would change from Champion Breweries to Champion Brands.
The proposed restructuring is expected to be completed in the first quarter of 2027, subject to shareholders' approval, the sanction of the Federal High Court and other relevant regulatory clearances.
To facilitate the process, Champion Breweries said the scheme document, containing details of the transaction and voting arrangements, was being made available to shareholders through its registrar, Africa Prudential Plc.
Meanwhile, shares of Champion Breweries will continue trading on the NGX until the restructuring is completed and the necessary approvals obtained.