The Boards of Directors of Nigerian Breweries Plc and Consolidated Breweries Plc have confirmed the receipt of approvals from their shareholders to combine both companies by way of a scheme of merger.
According to a statement from the Nigerian Breweries, the shareholders approvals were obtained at two separate court ordered meetings which were held in Lagos on December 4, 2014.
In a joint statement signed by Mr Nico Vervelde (Managing Director/Chief Executive Officer of Nigerian Breweries Plc) and Mr. Boudewijn Haarsma (Managing Director of Consolidated Breweries Plc), the companies thanked all shareholders for their active support for the proposal by their overwhelming vote of approval.
The statement also confirmed that the name of the enlarged company arising from the merger will be ‘Nigerian Breweries Plc’.
Following this shareholder endorsement, the companies will proceed to the final stage of the regulatory process with the aim of perfecting the scheme by the end of 2014.
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.
With the approvals of the shareholders for the merger, for every five ordinary shares held in Consolidated Breweries as at the Terminal Date, the shareholders of the company will receive four ordinary shares in Nigerian Breweries or a Cash Consideration of N120 per share of Consolidated Breweries held.
Analysts are of the opinion that the merger will make the new enlarged company have easier access to debt and equity capital at favourable terms.
Source : Tribune