Majority in Nigerian Breweries

Heineken N.V. yesterday notified Nigerian Breweries Plc. that it will exercise the option of converting it's loan to Nigerian Breweries, into equity on 15 December, 2000. This will bring the stake from 43.3 per cent to 54.2 per cent after the conversion.

 

The convertible loan stock, which was open to all shareholders, was approved by the Annual General Shareholders Meeting of Nigerian Breweries in June 2000. Heineken subscribed for EUR 71 million, that will now be converted into newly issued shares based on the average trading price of the previous fifteen days which ended on 11 December 2000. The aim of the convertible loan is to partially finance the current planned extensive investment programme. Modernising and extending the capacity of the breweries is required in order to meet growing demand.

 

Since the foundation of Nigerian Breweries in 1946, Heineken has rendered technical support and other management services. The management of Nigerian Breweries decided in 1996 to redesign all departments and business processes according to Heineken standards. With reference to the distribution power of Nigerian Breweries, further growth of the Heineken and Amstel brands in the coming years is foreseen. The results of Nigerian Breweries will be consolidated as from 1 January, 2001 and will contribute directly to the net profit of the Heineken Group.

 

 

Note for the editor

 

Nigeria, with 6.3 million hectolitres is the second largest beer market in Africa. With a production amounting to 3.3 million hectolitres of beer in 1999, Nigerian Breweries had a market share of 52 per cent, which has grown in the current year. Besides beer, Nigerian Breweries sells 300,000 hectolitres of soft drinks. Production takes place in five breweries all over the country. In 1999 the net profit amounted to EUR 36 million. It's lager beers Star and Gulder are the leading brands in Nigeria. Shares of Nigerian Breweries are traded on the Lagos Stock Exchange.

 

Heineken N.V. is the world's most international brewing group with production in more than 110 breweries in over 50 countries. The Heineken brand is sold in more than 170 countries. Heineken is the largest brewer in Europe and is with 7.7 million hectolitres the second largest brewer in Africa. The total Group Volume of Heineken amounted to 90.9 million hectolitres, ensuring the Group's second place in the world ranking. The net turnover amounted to EUR 7.1 billion with a net profit of EUR 516 million. The Heineken Group employs around 37,000 persons (1999 figures).