The Dutch brewing group Heineken could strengthen its position in the capital of Nigerian Breweries.
The Heineken group is reinforcing its strategy to take advantage of growth opportunities in the Nigerian market. In fact, it could soon strengthen its position in the company’s capital, i.e. in the shareholding of Nigerian Breweries.
On Friday, February 19, Nigeria’s second largest listed agribusiness company invited its investors to vote for the option to convert its final dividend into shares.
Photo by Ameer Basheer
There is no doubt that this resolution will be honored. In fact, since 2019, the Heineken group’s stake in the Nigerian subsidiary’s capital has grown. It has gone to almost 56.1%, and on this same basis, it would increase the number of shares it holds in the company.
This strategy aims to take maximum advantage of the growth potential represented by the Nigerian market for alcoholic and sugar-sweetened beverages. Despite the covid-19 and restrictive measures, Nigerian Breweries’ net turnover progressed by 4.3% in 2021.
In August 2020, the world’s number two brewing group hastened the purchase of 6.9 million shares in Nigerian Breweries.
The transaction took place through the Heineken Brasseries (Brouwerijen) joint venture. It was worth 246.12 million naira (US$637,411).
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