Heineken increases controlling stake in Nigerian Breweries

Dutch brewing company, Heineken N.V., has upped its majority stake in Nigerian Breweries Plc, Nigeria’s biggest brewer.

As of 30^th June 2020, according to Nigerian Breweries half-year 2020 financial results, Heineken Brouwerijen B.V. held 37.76% stake in the company, Distilled Trading International B.V., a subsidiary of Heineken N.V, held 15.47% while Heineken International B.V. held 2.72%,  making Heineken’s total holding in the brewer 55.95%.

Heineken’s latest acquisition efforts took place from 27^th to 31^st August, coming after reports that Heineken had purchased more shares to raise its majority stake in Nigerian Breweries.

Insider transactions reports at the Nigerian Stock Exchange on 1^st September revealed 192,403 ordinary shares of 50 kobo each of Nigerian Breweries were purchased by Heineken at an average price of N37.13.

Read also: Nigerian Breweries’ half-year profit falls by 58%, turnover by 12%

The recent equity purchase translated to 0.0024, increasing Heineken’s interest to 55.9567%.

Market insiders said Heineken is expected to buy more shares, noting that attractive valuation, foreign exchange illiquidity that has trapped many international investors as well as the promises of the Nigerian market were making multinationals with Nigeria know-how to dig further.

Every share increases strengthen Heineken’s control on Nigerian Breweries. The single largest domestic stake in Nigerian Breweries is 0.44%, belonging to Odutola Holdings Limited.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now