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 30th 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 27th to 31st 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 1st September revealed 192,403 ordinary shares of 50 kobo each of Nigerian Breweries were purchased by Heineken at an average price of N37.13.
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.