Foreign Investor Increases Stake in Nigerian Breweries

August 16, 2020
Nigerian Breweries shares

By Dipo Olowookere

A foreign investor in Nigerian Breweries Plc, Heineken Brouwerijen B.V, has increased its stake in the beer-making company.

The firm, in a notice to the Nigerian Stock Exchange (NSE) last week, said Heineken, which is one of its major shareholders, increased its holdings by 274,542 units.

According to the disclosure, the offshore investor bought these additional stocks in three different tranches from August 11 to 13, 2020.

It was stated that the transactions were executed at the stock exchange in Lagos and they averagely amounted to N9.8 million.

A breakdown of the deal showed that in the first tranche, Heineken bought 125,964 shares at a unit price of N33.92, amounting to N4.3 million and for the second transaction, the investor added 62,339 units at N36.35 each and this amounted to N2.3 million and in the last purchase, it accumulated additional 86,239 stocks at N37.00 per unit, resulting into N3.2 million.

Heineken Brouwerijen is a Dutch brewery company established in 1873 by Gerad Adriaan Heineken using cutting edge technology to create a beer of high quality, investing in research and development.

Business Post gathered that in 2000, Nigerian Breweries became a subsidiary of Heineken and the latter took over control of the former.

Four years later, Nigerian Breweries produced the first Heineken beer in small 33cl bottles and later introduced the large Heineken 60cl bottle.

It is important to note that the relationship between Nigerian Breweries and Heineken dates backs to 1947 when by Mr Frank Samuel of UAC and his team started the new company in Lagos.

Because UAC did not have a technical history in beer making, it entered into a technical agreement with Heineken, leading to investments from other merchandise companies in Nigeria including John Holt, GBO, SCOA, CFAO and UTC who all took some equity interest in Nigerian Breweries.

Today, the company, which had the first locally produced beer, is the market leader in the brewery industry in Nigeria.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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