The Boards of
Directors of International Breweries Plc, Intafact Beverages Limited and
Pabod Breweries Limited have agreed to explore the merger of the three
businesses, subject to required regulatory and shareholders’ approvals.
Should the proposed merger be approved,
the enlarged company is expected to be one of the leading listed
companies in Nigeria, and one of the largest beer makers in Africa’s
biggest economy, The Cable reports.
The proposed merger is expected to be
beneficial to all key stakeholders, particularly shareholders. It is
expected to create value by generating both revenue and cost synergies,
enhanced operational efficiencies, better resource management and more
streamlined operations.
In addition, the enlarged company will
create a platform for further investment that will have a positive
impact on the communities where the operations of the companies are
present as well for as the wider economy.
Currently, AB InBev indirectly owns 75%
of Intafact, 82.8% of Pabod Beverages and 72.2% of International
Breweries. International Breweries is currently listed on The Nigerian
Stock Exchange.
AB InBev Zone President for Africa,
Ricardo Tadeu, said that the proposed merger would create a single
efficient company through which AB InBev will continue its investment
into Nigeria. Following the proposed merger, the brands of Intafact,
International Breweries and Pabod may be marketed and distributed
throughout the country across all market segments, creating considerably
enhanced value for shareholders.
“In addition, the enlarged company would
have a significantly increased geographical footprint and a
consolidated database system, enabling enhanced efficiency.
This, when taken together with the
positive impact on communities and the economy due to increased
investment by the enlarged company and the long-term growth prospects of
Nigeria, means we are very optimistic about our future in the country,”
he said.
Should the necessary regulatory
approvals be received, including those of The Nigerian Stock Exchange
and the Securities and Exchange Commission, the parties will take
further steps to consummate the proposed merger including obtaining the
approval of their respective shareholders at separate Court-Ordered
Meetings.
All three companies will continue to
operate as usual until the required approvals are received. Further
developments will be communicated in due course.
Read more at TheCable.
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