Oct 4 (Lagos) - Things are getting heated up in the breweries sector as there is some important news from the sector in Nigeria that is going to affect stock prices of Companies today, next week and beyond.
Firstly the acquisition of Guinness Nigeria Plc (
GUINNESS ) by Tolaram Group has been completed with the official announcement made today that the price paid per share is N 81.60 per unit for 1,270,943,368 units representing Diageo's 58.02% stake in the brewer, marking the exit of Diageo from Nigeria. Stock is currently up almost 5% to N 68 per unit at the time of writing this article. This price is still 20% off from where it should be smart investors will take note.
Secondly, the rights issue of Nigerian Breweries Plc (
NB ) has opened 2 days ago and will close of Friday, October 11 2024. The Company is offering 22.6 billion units of 50 kobo each at the price of N 26.50 per unit seeking to raise almost N 600 billion in the process. The stock is currently trading at N 30 per unit so the rights issue is still attractive for smart investors.
Thirdly, the maker of Budweiser in Nigeria, International Breweries Plc ( INTBEW ) rose this week to N 4.40 levels which is well above the N 3.65 per unit that the Company recently issued its rights at.
Lastly stocks of Champion Breweries Plc (
CHAMPION ) continue to sway in a narrow range currently at N 3.11 per unit. This is the smallest brewery in the Country and was recently acquired by an entity calling itself Enjoycorp limited.
So a lot of activity the loss making sector (for now) as investors position for an eventual turn-around which could happen as some sort of buying power returns for consumers in our economy ravaged by constant exchange rate losses and monstrous inflation allowed to build up for the past 8-9 years.
Investors (smart) should study this article properly to pick the right stock which could give handsome returns in the coming years when our Country's brewery sector starts to re-claim its lost position and prestige.
reporting for easykobo.com on Friday, Oct 4 2024 from Lagos, Nigeria