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 brewers in Africa’s biggest economy.
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.
Ricardo Tadeu, AB InBev Zone President for Africa, 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,” he said.
“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.”
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.