CHAMPION BREWERIES PLC RIGHTS ISSUE – Strategic Capital Raise to Fund Bullet Brand Acquisition and Accelerate International Expansion

Executive Summary

Champion Breweries Plc has launched a ₦15.9 billion Rights Issue as the first phase in a two-step capital raise designed to fund the strategic acquisition of the Bullet brand—a transformational move that positions the company for accelerated growth in both domestic and international markets.

The Rights Issue follows shareholder approval secured at the Extraordinary General Meeting (EGM) on 24 July 2025 and involves the issuance of 994,221,766 ordinary shares at ₦16 per share, on a 1-for-9 basis to shareholders on the register as of 4 September 2025.

This Rights Issue is supported by a strong syndicate of capital market institutions led by Rand Merchant Bank Nigeria Limited, alongside other joint issuing houses. A subsequent Public Offer will follow as phase two of the capital-raising programme.

Offer at a Glance

Item   Details

Issuer Champion Breweries Plc

Offer Type   Rights Issue (Phase 1 of 2-step capital raise)

Offer Size     ₦15.9 billion

Number of Shares 994,221,766 ordinary shares

Offer Price   ₦16 per share

Basis of Allotment  1 new share for every 9 existing shares held

Qualification Date September 4, 2025

Purpose of Issue    Funding the Bullet brand acquisition

Lead Issuing House          Rand Merchant Bank Nigeria Limited

Joint Issuing Houses         FBNQuest Merchant Bank, CardinalStone Partners, Investment One, CFG Maynard

Next Phase  Public Offer (Phase 2)

Offer Status Open – Time-sensitive to complete acquisition before year-end

Why Invest in the Rights Issue?

1. Strategic Acquisition of the Bullet Brand

The proceeds from the Rights Issue will be used to acquire Bullet, a fast-growing alcoholic beverage brand with strong domestic recognition and rising international demand. This acquisition:

• Expands Champion’s product portfolio into high-margin, premium beverages
• Strengthens competitive positioning in Nigeria’s consolidating beverage market
• Provides a platform for regional and international distribution
• Enhances brand equity and scale in the high-growth energy and flavored drinks category

2. Transformational Growth and Market Expansion

According to the MD/CEO, the acquisition marks a turning point for Champion Breweries:

“This gives us the scale and strength to compete beyond Nigeria, unlock high-margin growth, and build a platform that resonates internationally.”

Investors gain exposure to a growth trajectory supported by:

• Entry into new product categories
• Expansion into export markets
• Strong synergy opportunities with existing brewery operations

3. Attractive Pricing and Value Upside Potential

The offer price of ₦16 per share provides shareholders with:

• A discounted entry relative to long-term earnings expectations
• Potential capital appreciation following consolidation of the Bullet brand
• A larger stake in a company entering a new profitability cycle

4. Strong Shareholder Rights and Participation Opportunity

Existing shareholders are given priority to:

• Increase equity ownership
• Preserve their proportional shareholding
• Participate in a major strategic move at discounted terms

This is particularly beneficial ahead of the second-phase Public Offer, where pricing may differ.

5. Step 1 of a Bigger, Well-Structured Capital Program

The Rights Issue is the first phase of a broader capital-raising plan. The two-step structure:

• Ensures staggered, flexible funding
• Allows shareholders early access before dilution from the upcoming Public Offer
• Enhances capital adequacy to support acquisition, integration, and brand expansion

6. Strong Institutional Backing

The transaction is led by reputable institutions, including:

• Rand Merchant Bank Nigeria (Lead Issuing House)
• FBNQuest
• CardinalStone
• Investment One
• CFG Maynard

This underscores:

• Transaction credibility
• Strong governance
• Efficient execution

Conclusion

Champion Breweries Plc’s ₦15.9 billion Rights Issue represents a significant strategic step to strengthen its competitive position, expand its product portfolio, and establish a foundation for international growth through the acquisition of the Bullet brand.

With compelling offer terms, strong institutional backing, and a transformational growth agenda, the Rights Issue presents a timely opportunity for shareholders to deepen their stake in a company entering a new phase of scale and profitability.