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NB reiterates commitment to improve shareholders’ value

By Helen Oji
09 February 2015   |   11:00 pm
Says merger will accelerate revenue growth, expand profit capacity NIGERIAN Breweries Plc  has reiterated its commitment to enhance operational efficiencies and maximize value for investors and all stakeholders of the merged company.    The enlarged company is also  expected t to extend market leadership accelerate revenue growth and expand profit capacity.    The Chairman of…

Says merger will accelerate revenue growth, expand profit capacity

NIGERIAN Breweries Plc  has reiterated its commitment to enhance operational efficiencies and maximize value for investors and all stakeholders of the merged company.

   The enlarged company is also  expected t to extend market leadership accelerate revenue growth and expand profit capacity.

   The Chairman of the company, Kola Jamodu stated this at the floor of the Nigerian Stock Exchange (NSE) , at the formal introduction of the management of the enlarged company to the NSE in Lagos yesterday.

   Jamodu told stock brokers that the new NB currently has 11 breweries, which is strategically spread across the nation and two malting plants.

   He said the merger would increase the wealth of shareholders, adding it is also boost to the equities ma\rket as former shareholders of the Consolidated Breweries Plc which was not listed in the NSE now have the opportunity to trade their shares on the Exchange.

   He added that this would enhance liquidity of the stocks and increase market capitalization of the NSE

   “Other major benefits accruable from the merger also include cost savings from the consolidation of supply and distribution networks of both companies as a result of improved operational efficiencies arising from integrated operations. The products of both companies will be manufactured more efficiently through their combined operational capacities.

  “Significant cost saving is targeted by distributing products and selling the enlarged product portfolio of the new company across the entire combined sales and distribution the network of the enlarged company . The enlarged company is expected to extend market leadership accelerate revenue growth and expand profit capacity.”

    The Nigerian Breweries (NB) Plc and Consolidated Breweries (CB)  board of directors, had, last year confirmed receipt of approvals from their various shareholders for business combination by way of merger.

The statement said that the shareholders approvals were obtained at two separate Court Ordered Meetings held in Lagos on Dec. 4.

   “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,” said the statement.

  “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. Nigerian Breweries, listed on the Nigerian Stock Exchange, is expected to be the surviving entity after the merger.

   The company in a statement to the Nigerian Stock Exchange said that both companies would continue to operate as usual until regulatory and other approvals were obtained.

  “The proposed merger of both companies is expected to create value for all key stakeholders, particularly shareholders, and drive benefits from increased economies of scale, and enhance operating and administrative efficiencies, it stated.

Four of NB shares would be exchanged for five shares of Consolidated Breweries.

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