Adedapo Adesanya
By Adedapo Adesanya
EnjoyCorp Limited, a holding company established for food, beverage and hospitality brands, has reached an agreement with Heineken B.V., to acquire its entire shareholding in The Raysun Nigeria Company Limited.
The firm holds an 86.5 per cent stake in Champion Breweries Plc, a leading regional brewer listed on the Nigerian Exchange (NGX) Limited.
The proposed transaction is subject to obtaining requisite regulatory approvals and the parties expect to close the transaction in the second quarter of this year (Q2 2024).
EnjoyCorp intends to keep Champion Breweries Plc listed on the NGX.
Heineken will continue to support Champion Breweries for 12 months after the transaction has closed to ensure a smooth transition of ownership.
The proposed acquisition will mark EnjoyCorp’s strategic entry into the beverage category underpinning the company’s long-term commitment to the African consumer.
The deal will result in EnjoyCorp taking a controlling stake in Champion Breweries, integrating it as an anchor subsidiary.
This sale could mean a slow exit for Heineken B.V. as the beer sector is facing a tough operating environment in Nigeria.
Recently top beer makers, Guinness Nigeria and International Breweries reported post-tax losses due to the foreign exchange (FX) crisis in the country.
Earlier this month, Nigerian Breweries Plc issued a new price review notification to all its customers in the West Zone as it sought to offset the impact of increased production expenses.
“This is to inform you that we are constrained to review the prices of some of our SKUs with effect from Monday, February 19, 2024.
“This review has become necessary because of continued rising input cost and the need to mitigate the impact,” the statement dated February 12 said.
