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Champion Breweries Plc (NGX: CHAMPION), has officially opened its fully approved Rights Issue of 994,221,766 ordinary shares of 50 kobo each at ₦16.00 per share, aiming to raise gross proceeds of ₦15.907 billion. The offer, which runs from 24 November 2025 to 5 January 2026, is on the basis of 1 new ordinary share for every 9 ordinary shares held as at the close of business on 4 September 2025. The rights are tradable on the floor of the Nigerian Exchange Limited (NGX) throughout the offer period.
Sole Purpose: Acquisition of the Bullet Brand Portfolio
The entire net proceeds of approximately ₦15.52 billion (after estimated issue costs of ₦388.34 million or 2.44% of gross proceeds) will be applied towards the partial settlement of the previously announced acquisition of the entire brand assets and intellectual property of the Bullet range of ready-to-drink (RTD) alcoholic beverages and energy drinks from Sun Mark International Limited, while simultaneously satisfying the NGX’s 20% minimum free-float requirement.
On 20 August 2025, Champion Breweries announced it had signed a definitive agreement for the transaction, which is structured as an asset carve-out into a newly incorporated Dutch entity. Upon completion, Champion Breweries will own the majority stake while Vinar N.V. (the Belgian majority shareholder of Sun Mark) will retain a minority interest.
Bullet currently operates in over 14 African countries and holds dominant positions in Nigeria: Bullet Black is the country’s leading RTD alcoholic beverage, while Bullet Blue energy drink ranks among the top six brands. The acquisition is expected to deliver immediate FX earnings, enhanced distributor leverage, supply-chain synergies, portfolio diversification, and stronger market presence.
– Pre-issue: ₦143.17 billion
– Post-issue (assuming full subscription): ₦159.08 billion
Strategic Rationale and Shareholder Approvals
Champion Breweries’ capital-raising process began with shareholder approval at an Extraordinary General Meeting on 4 December 2024, where the board received a broad mandate to pursue equity or debt fundraising. Initially, the board opted for a large public offer by way of subscription and engaged advisers to prepare the necessary documentation. However, following a comprehensive strategic review of the company’s capital requirements and the rapidly consolidating beverage industry, the board concluded that a significantly larger injection was needed to remain competitive and to pursue both organic and inorganic growth, particularly through acquisitions.
Consequently, a revised two-pronged plan was formulated — a public offer of up to 2.5 billion new shares at ₦16.80 each and a rights issue of 994,221,766 shares at ₦16.00 each — and this new structure was presented to and approved by shareholders at another EGM held on 24 July 2025. At the same meeting, shareholders also authorised an increase in the company’s share capital and a wider ₦45 billion fundraising framework combining equity and debt, in line with parent company enJOYcorp’s post-2024 takeover growth strategy.
Ultimately, the board decided to prioritise and proceed first with only the rights issue portion, deploying the entire net proceeds of approximately ₦15.52 billion toward the Bullet brands acquisition while simultaneously satisfying the NGX’s 20% minimum free-float requirement, with the previously planned larger public offer deferred to ensure speedy execution of the transaction.
Transaction Advisers
- Lead Issuing House: Rand Merchant Bank Nigeria Limited
- Joint Issuing Houses: FBNQuest Merchant Bank Limited, CardinalStone Partners Limited, Investment One Financial Services Limited, CFG Maynard Limited
- Stockbrokers: APT Securities and Funds Limited
- Solicitors to the Issue: Banwo & Ighodalo
- Registrar: Africa Prudential Plc
- Reporting Accountants: SIAO Partners
- Auditors: Deloitte & Touche
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