Nigeria: Heineken acquires additional equity stake in Nigerian Breweries

Netherlands-based Heineken N.V. has acquired additional equities stakes in Nigerian Breweries in deals valued at about N138.1 million. The latest acquisitions were struck between September 8 and 11, 2020, The Nation Newspaper reported on September 16.

Latest insider transaction reports at the Nigerian Stock Exchange (NSE) showed that Heineken, through Heineken Brouwerijen B.V, acquired 3.35 million ordinary shares of 50 kobo each in Nigerian Brewderies (NB) at an average price of N41.16 per share.

It had between August 27 and August 31, 2020, acquired 0.192 million ordinary shares of 50 kobo each of NB at an average price of N37.13 per share.

These acquisitions came after The Nation reported that Heineken had bought additional stakes to increase its majority shareholding in Nigerian Breweries to 55.9543 per cent.

Prior to the recent streaks of acquisitions, Heineken’s holdings in Nigerian Breweries were held by Heineken Brouwerijen BV, 37.76 per cent; Distilled Trading International BV, 15.47 per cent and Heineken International BV, which held 2.72 per cent.

With the initial acquisitions, Heineken Brouwerijen BV’s holding increased to 37.7643 per cent. The latest acquisitions represented 0.0024 per cent equity stake, increasing Heineken Brouwerijen BV’s shareholding to 37.7667. Thus, Heineken’s majority shareholding now stands at 55.9567 per cent, based on available reports.

The Nation had reported that market insiders expected Heineken to buy more shares noting that attractive valuation, foreign exchange illiquidity that trapped several foreign investors and the prospects of the Nigerian market were making multinationals with Nigerian know-how to dig in further.

The new share acquisitions are significant for the multinationals. Every additional share increases Heineken’s control on the Nigerian subsidiary. The single largest domestic stake in the widely dispersed Nigerian Breweries’ shareholding is 0.44 per cent held by Odutola Holdings Limited.

Analysts had said the new acquisitions by multinationals were futuristic, especially with the prospects of a single large African market envisaged by the African businesses under the African Continental Free Trade Area (AfCFTA).

The AfCFTA seeks to create a single continental market for goods and services of African origin with free movements across the member countries. Nigeria has already signed the AfCFTA agreement.

16 September, 2020