Champion Breweries Plc has announced plans for a major capital restructuring, seeking shareholder approval to raise up to N5 billion through the issuance of additional ordinary shares.

The initiative aims to strengthen the company’s balance sheet, enhance operational capacity, and position it for long-term growth in Nigeria’s competitive brewing industry.

In a corporate disclosure filed with the Nigerian Exchange and signed by the Company Secretary and Legal Adviser, Chief Tosan Aiboni, the company revealed that an Extra-Ordinary General Meeting (EGM) will be held virtually to consider key resolutions related to the proposed capital raise and associated structural adjustments.

The planned issuance up to 5 billion new ordinary shares of 50 kobo each—may be executed through various capital market instruments, including rights issues, public offerings, or other funding mechanisms, both domestically and internationally. Pricing will be determined through book building or other accepted valuation methods, subject to market conditions and regulatory approvals.

This capital raise builds on prior approvals granted at the company’s general meeting on December 4, 2024. It is expected to provide financial flexibility to pursue strategic initiatives, fund operational improvements, and scale production to meet evolving consumer demand.

Proceeds from the offer will support key initiatives such as working capital enhancement, facility upgrades, and sustainability-focused investments. The company also seeks shareholder authorization to absorb any oversubscription, contingent on regulatory clearance.

To accommodate the new equity structure, Champion Breweries will adjust its authorised share capital. The board will be empowered to allot the new shares and amend the company’s Memorandum and Articles of Association accordingly. Additional resolutions will authorize the board to carry out all necessary steps for the capital raise, including the engagement of advisers and obtaining regulatory consents.

Shareholders will also be asked to ratify previous lawful actions taken by the board in relation to the capital restructuring.

This move comes as Nigeria’s beverage market grows increasingly competitive, with both local and global players investing in innovation and capacity expansion to secure market share and deepen consumer engagement.