Nigerian Breweries Plc says it has completed its merger with Consolidated Breweries Plc.
According to company, the merger was finalised on December 31, 2014.
The company said these in a statement by its Managing Director and Chief Executive Officer, Mr. Nicolaas Vervelde.
The statement explained that the merger was completed after regulatory authorities approved it.
“This follows the receipt of approval of the Securities and Exchange Commission and the sanction by the Federal High Court. Nigerian Breweries Plc has formally informed The Nigerian Stock Exchange of conclusion of merger process as required by the listing regulations,” the statement read in part.
The Nigerian Breweries MD confirmed that the name of the merged entity was “Nigerian Breweries Plc” and that it would remain listed on the Nigerian Stock Exchange.
The next line of action, according to Vervelde, is the operational integration of the two businesses, which is scheduled to commence this month.
He thanked the company’s shareholders and regulatory authorities for the support for the merger, assuring them that the merger would lead to greater growth for the company.
According to the statement, with the conclusion of the merger, the enlarged Nigerian Breweries is now enabled to fully capitalise on the opportunities of the Nigerian beer and malt drinks market and create significant value through delivery of broader product offering, operational efficiencies and access to new markets.
“The merger is also expected to deliver a number of benefits for its stakeholders including shareholders, employees, consumers, trading partners, suppliers and the Nigerian economy as a whole,” it added.
The shareholders of both companies had on December 4 approved the merger at separate court-ordered meetings in Lagos.
Following the approval, the companies had explained in a joint statement that all that was left was regulatory approval to enable them perfect the scheme by the end of 2014, a goal they have now achieved.
“The merger of Nigerian Breweries Plc and Consolidated Breweries Plc is expected to create value for all key stakeholders, drive benefits from increased economies of scale and enhance operating and administrative efficiencies,” they had said.
Heineken NV, which was a major stakeholder in both companies – and in favour of the merger, had observed international best practice at the court-ordered meeting by deciding not to exercise its voting right, avoiding any possible doubts on its integrity/conflicts of interest in the deal.
Under the merger, shareholders of Consolidated Breweries are to as of the terminal date receive four ordinary shares in Nigerian Breweries for every five ordinary shares held in the CB or a cash consideration of N120 per share of Consolidated Breweries shares held.
Punch