Heineken increases its equity stake in Nigerian Breweries shares

Heineken has increased its equity stake in Nigerian Breweries with the acquisition of additional 274,542 shares at an average price of N35.76 (USD 0.094) per unit. The transaction was executed in three different transactions, according to the notice signed by Uaboi G. Agbebaku, Company Secretary, Nigerian Breweries Plc.

The share price, however, moved up on Thursday August 27 from N36 to N37, up by N1 or 2.78percent despite negative close of equities trading session.

The notice revealed that the Dutch brewer already owns 55.95% of the total of 8 billion outstanding shares and the new shares will only marginally increase its stake.

In recent years, major brewing groups have increased their investments in Nigeria. The country has a young and growing population of more than 200 million people and an average beer consumption of 10 to12 liters per year. Despite the fact that this is one of the highest consumption rates in Africa it is still tiny compared to other regions in the world.

Meanwhile, clear market leader is Nigerian Breweries with 11 production sites in Nigeria and a market share of about 55% in 2019. In contrast, the number two in the market, International Breweries which held about 23% of the beer market in 2019 is catching up, as it overtook Guinness Nigeria in size which holds 22% of the domestic sales in the same year in review. International Breweries which is since the purchase of Johannesburg-based brewing group SAB Miller in 2016 part of the world largest brewing group AB InBev  opened last year a new USD 250 million brewery near Lagos, Nigeria which  will be extended in stages for another USD 150 million in the coming years. Beer production in Nigeria amounts to about 20 million hectoliters.


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