LAGOS – Nigerian Breweries Plc said on Friday it would seek shareholders’ approval for its planned merger with Consolidated Breweries Plc on Dec. 4.
The company made the announcement in a notice to the shareholders, obtained by the News Agency of Nigeria (NAN) in Lagos.
According to the notice, the company is planning to exchange four of its shares for five shares of Consolidated Breweries Plc.
It said that the shareholders, at the meeting, would be asked to consent to an order of a court sanctioning the merger to allow the actualisation of the deal.
NAN reports that Heineken, the majority shareholder in Nigerian Breweries in 2005, acquired a controlling stake in Consolidated Breweries.
The company intends to merge both businesses to take advantage of Nigeria’s growing market for beer and malt drinks.
Nigerian Breweries recently won the Securities and Exchange Commission’s approval for the merger.
Nigerian Breweries, listed on the Nigerian Stock Exchange, is expected to be the surviving entity after the merger.
The company said that both companies would continue to operate as usual until regulatory and other approvals were obtained.
“The proposed merger of both companies is expected to create value for all key stakeholders, particularly shareholders and drive benefits from increased economies of scale, enhance operating and administrative efficiencies,” it stated. (NAN)