The shareholders of Consolidated Breweries Plc have given approval to the company’s merger schemes with Benue Brewery Limited and DIL/Maltex Nigeria Plc.

A statement by the company on Friday noted that the approval was given at a court-ordered meeting of Consolidated Breweries in Lagos.

The company explained in the statement that the merger was carried out with a view to improving operational efficiency, expanding growth prospects and maximising value for all stakeholders.

It quoted its chairman, Prof. (Mrs.) Oyinade Odutola-Olurin, as saying that both companies were subsidiaries of Consolidated Breweries and engaged in the same line of business.

Odutola-Olurin explained that Consolidated Breweries owned 97.83 per cent of the equity in DIL/Maltex and 100 per cent of the equity in BBL.

She noted that the primary objective of the mergers is to streamline the management, corporate governance and operations of Consolidated Breweries and its subsidiaries.

“It is envisaged that the mergers will lead to administrative efficiencies, cost reductions and operational synergies; and be beneficial to all stakeholders of Consolidated Breweries,” she noted.

She further explained that the post-merger entity would capture positive economies of scale and realise significant synergies through enhanced operational and administrative efficiencies, a streamlined supply chain, and a unified service delivery platform.

The Chairman, BBL, Mr. Steven Ameh, agreed thatq the merger schemes would provide an opportunity for Consolidated Breweries to better utilize its assets and further streamline its operations.

The combination of the assets of Consolidated Breweries and DIL/Maltex and BBL, would increase Consolidated Breweries’ manufacturing capacity while streamlining overlapping costs, resulting in increased earnings.

He said, “Significant operational synergies will be generated from the optimisation of key operations, particularly the manufacturing, overall management, administration and accounting functions.

“Also, the mergers would result in improved returns to the shareholders and employees while customers would also benefit from access to a wider operational platform.”

The statement noted that under the terms of the two separate schemes of merger, all the assets, liabilities and undertakings of both DIL/Maltex and BBL including real property and intellectual property rights, were transferred to Consolidated Breweries.

It added that the entire share capital of DIL/Maltex comprising 350,000 ordinary shares of N1.00 each were cancelled; and DIL/Maltex stood dissolved without being wound up.

“In consideration for the transfer of all the assets, liabilities and undertakings of DIL/Maltex to Consolidated Breweries, it was approved that each DIL/Maltex shareholder would receive one ordinary share of Consolidated Breweries, credited as fully paid-up in exchange for 20 ordinary shares held in DIL/Maltex as at the terminal date,” it said.

It added that the same proposition applied to BBL while the entire capital of the company comprising 500,000,000 ordinary shares of N1.00 each were cancelled and BBL stood dissolved without being wound up.

Source: Punch (written by Udeme Ekwere)