By Amaka Ifeakandu
Lagos
Nigerian Breweries Plc and Consolidated Breweries have entered into agreement to explore a combination of the two businesses by a way of scheme of merger. A letter of notification sent by the two companies to the Nigerian Stock Exchange (NSE) said that the boards of both companies have approved the merger plan of the two parties.
As a result of the agreement, a pre-merger application has been filed with the Securities & Exchange Commission for its approval.
The statement said that upon receipt of the approval, both parties will take further steps to consummate the proposed merger including obtaining the approval of their respective shareholders to the Scheme of Merger at separate court-ordered meetings. The terms and conditions of the proposed merger will be contained in the scheme of merger document to be prepared and sent to all shareholders.
The two companies are subsidiaries of Heineken NV. While the parent company holds approximately 54.1% of the shares in Nigerian Breweries Plc, it holds 53.8% of the shares in Consolidated Breweries Plc.
