International Breweries Plc plans to combine its business with Intafact Beverages Limited and Pabod Breweries Limited. The three companies have Anheuser-Busch Inbev SA as a common shareholder.
In a notification to the Nigerian Stock Exchange (NSE), IB Plc said that the to three companies have agreed to explore combination of their businesses via a scheme of merger subject to requisite regulatory and shareholdersâ€™ approvals.
According to IB Plc, the proposed merger was considered and approved at the companyâ€™s board meeting on June 2, 2017. The Osun State based brewing firm said the merger would benefit all stakeholders, particularly shareholders.
â€œThe proposed merger is expected to generate both revenue and cost synergies, enhanced operational efficiencies, better resource management and more streamlined operations. On the receipt of regulatory approvals (including the NSE and Securities and Exchange Commission), all parties will take further steps to consummate the proposed merger including obtaining the approval of their respective shareholders at separate court-ordered meetings,â€ the company said.
IB Plc was incorporated in 1971 and got listed on the NSE in 1995 and operates from Ilesha, Osun State. Intafact Beverages Limited, incorporated in 2007, is based in Onitsha, while Pabod Beverages Limited, incorporated in 1978 operates from Oginigba, Port Harcourt, Rivers State.
Meanwhile, the Nigerian equities market declined by 1.2 per cent yesterday after a nine-day rally. The market had hit a two-year high on Monday with Dangote Cement Plc pushing the market capitalisation to cross the N11 trillion psychological level. However, the rally was halted yesterday as profit taking set in. Consequently, the NSE All-Share Index fell to close at 32,200.38, while market shed N130.7 billion to close at N11.1 trillion.
Bellwether stocks such as Dangote Cement Plc, Mobil Oil Nigeria Plc, GTBank Plc and Unilever Nigeria Plc contributed to the decline. Mobil Oil Nigeria led the price losers, shedding 9.7 per cent, trailed by NPF Microfinance Bank and Dangote Cement Plc with 5.0 per cent apiece. Unilever Nigeria Plc fell by 4.5 per cent, while AXA Mansard Insurance Plc and Livestock Feeds Plc shed 4.4 per cent each.
On the other hand, Sterling Bank Plc escaped the bears, to lead the gainers with 9.7 per cent. May & Baker Nigeria Plc trailed with 9.6 per cent. Champion Breweries Plc, Diamond Bank Plc appreciated by 9.1 per cent and 5.7 per cent respectively. UACN Property Development Company Plc, chalked up 5.1 per cent. Ashaka Cement Plc, UAC of Nigeria Plc and Seplat Petroleum Development Company Plc garnered 5.0 per cent apiece.