By David Olujinmi
Copyright businessday
Champion Breweries is seeking to raise N58 billion through equity offerings to finance its planned acquisition of Bullet, the ready-to-drink brand.
The plan was disclosed by Inalegwu Adoga, the managing director of Champion Breweries, during the company’s Facts Behind the Figures presentation at the Nigerian Exchange on September 23.
According to him, the equity component will be split between a N42 billion public offer and a N16 billion rights issue. He noted that this will give both new and existing investors the chance to participate in the company’s expansion.
“Our ambition is to raise capital from the market, and our initiative falls into two categories. We’re going to raise equity, and we’re also going to focus on debt financing,” Adoga said.
The equity raise is tied to Champion Breweries’ August 20 announcement that it would acquire the brand assets and intellectual property of Bullet from Sun Mark. Bullet already has a footprint in 14 African countries, and the deal is expected to position Champion Breweries for entry into the export market while enhancing its distribution leverage across the continent.
Beyond the acquisition, part of the N58 billion equity raise will also support the company’s working capital needs.
N45 billion bond programme
Adoga further revealed that Champion Breweries is planning a N45 billion bond programme, with the first series targeting N30 billion in five-year unsecured bonds. Proceeds from the debt issuance will go into capital expenditure, including investments in new packaging lines, returnable packaging materials, and technology upgrades.
“We are moving away from the Heineken platform where we have operated for many years. This requires us to build our own digital and technology backbone to operate independently and improve operational efficiency,” he added.
Market performance and financial results
The fundraising drive comes on the back of a stellar year for Champion Breweries on the Nigerian Exchange. With a share price of N15.25, the stock has gained 300 percent year-to-date, hitting a 52-week high of N19.73 on August 20.
This strong market performance has been driven by a turnaround in financial results. In the first half of 2025, Champion Breweries reported a net income of N2.3 billion, compared to a loss of N386.7 million in the same period of 2024. It represents a year-on-year growth of 692 percent. Revenue surged 67 percent to N15.9 billion, while net income margin stood at 14.3 percent.
With earnings per share of N0.26, the company currently trades at a price-to-earnings ratio of 58.7x, reflecting heightened investor expectations of sustained growth.
