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NB confirms SEC’s approval of merger with Consolidated Breweries

By on January 4, 2015

The management of Nigerian Breweries Plc has confirmed that its merger with Consolidated Breweries Plc has now been finalized with effect from December 31, 2014.

According to a company statement signed by the Managing Director/CEO of Nigerian Breweries Mr. Nicolaas Vervelde “This follows the receipt of approval of the Securities and Exchange Commission (SEC) and the sanction by the Federal High Court. Nigerian Breweries Plc has formally informed The Nigerian Stock Exchange of conclusion of merger process as required by the listing regulations”

Mr. Vervelde also indicated that the name of the enlarged company arising from the merger will be ‘Nigerian Breweries Plc’ and the company will remain quoted on the Nigerian stock exchange.

Regulatory authorities

While thanking the stakeholders and regulatory authorities for their support and approvals respectively, the company stated that the process of operational integration of the two businesses “will commence immediately in January 2015”.

With the conclusion of the merger, the enlarged Nigerian Breweries is now enabled to fully capitalise on the opportunities of the Nigerian beer and malt drinks market and create significant value through delivery of broader product offering, operational efficiencies and access to new markets. The merger is also expected to deliver a number of benefits for its stakeholders including shareholders, employees, consumers, trading partners, suppliers and the Nigerian economy as a whole.

Meanwhile, some investors’ and capital market operators at the nation’s bourse says the proposed merger of Nigerian Breweries (NB) Plc and Consolidated Breweries, has introduced a new platform for sustainable economic diplomacy.The stakeholders said in separate interviews in Lagos, that the business combination would not only challenge real sectors operators to overhaul the businesses but provided another impetus for foreign core investors to positively review their interest in Nigeria.

According to them, the affirmation of the proposed merger at the Dec. 4, 2014 separate Court Ordered Meetings (COM) had further leverage the Nigerian real sector operations.

Mr. Godwin Anono, Chairman, Nigeria Professional Shareholders Association, said that the shareholders had supported the merger because of the enhanced exchanged ratio proposed by the companies.Anono said that the exchange ratio of four NB shares to five Consolidated Breweries was a fair deal when compared with developments in the market where shareholders were short-changed.

He said that the shareholders had supported all the resolutions of the COM to ensure speedy conclusion of the merger plan. Anono also said that the merger would stimulate economic growth and development of the capital market.

Mr Timothy Adesiyan, President, Nigeria Shareholders Solidarity Association (NSSA) had expressed shareholders readiness for the consolidation exercise. Adesiyan said that the merger would turnaround the fortunes of both companies in terms of robust growth and return on investment. The NSSA boss called on the Securities and Exchange Commission (SEC) to ensure protection of the minority shareholders in the merger process.

 

 

[Vanguard]