By Modupe Gbadeyanka
One of the leading brewery organisations in Nigeria, International Breweries Limited, has expressed its intention to form a merger with two other companies.
This move, International Breweries explained, is part of its expansion plans, which would eventually benefit shareholders in terms of returns on their investments in the company.
International Breweries listed the two firms it intends to merge with as Intafact Beverages Limited and Pabod Breweries Limited.
A statement signed by the company’s Secretary, Muyiwa Ayojimi, noted that the three organisations have “agreed to explore a combination of the three businesses via a scheme of merger subject to requisite regulatory and shareholders’ approvals.”
According to Ayojimi, “The proposed merger, which was considered and approved at the International Breweries Plc’s board meeting on June 2, 2017, is expected to be beneficial to all stakeholders, particularly shareholders.”
“The proposed merger is expected to generate both revenue and cost synergies, enhanced operational efficiencies, better resource management and more streamlined operations,” he explained.
“On receipt of regulatory approvals, including the Nigerian Stock Exchange (NSE) and the Securities and Exchange Commission (SEC), all parties will take further steps to consummate the proposed merger including obtaining the approval of their respective shareholders and separate Court-Ordered Meetings.
“All three companies, which are indirect subsidiaries of Anheuser-Busch InBev SA/NV, will continue to operate as usual until the receipt of required approvals.
“Further developments will be communicated to shareholders in due course,” the statement disclosed.
