Error of Omission or Commission?

A few days ago, Champion Breweries dropped an insider dealings notice.

 It was for a sale of 300,000,000 shares @ ₦4.00 per share held by Raysun Nigeria Limited. The notice was dated October 22, 2024, but uploaded on the 4th of December. 

Why did it take so long for the company to share this notice? 

On the 5th of December, 300,933,511.00 shares traded. That then begs the question, is this a separate transaction. Or was there an error on the date of the notice? 

How is that no one at the NGX spotted this?

At an Extra-ordinary General Meeting held at Lagoon Restaurants, 1C Ozumba Mbadiwe Street, Victoria Island, shareholders gave approval to management to raise additional capital of up to N15 billion. 

Details of the raise

In response to feedback from minority investors, Eric Idiahi a non executive director (and core shareholder through Enjoycorp) shed more light on the planned raise

What we are trying to do, is to raise N5 billion first on the bond issue. Its a programme. Its a N15 billion programme. As part of that programme, we will first raise N5 billion debt now. Then subsequently  later go out and  raise further money.

On the equity raise

We hope to issue about 1.57 billion shares. The pricing is yet to be determined. We also take note that there should be a rights issue done before the public offer. We will take note through the chair, and take that on board. 

A rights issue is when a company sells shares to existing investors. A public offer is when a company sells shares to the general public. Anyone can buy including existing shareholders.

Timing 

We want to ensure that we close this before the end of Q1 (2025). We are actively working through the holiday season. We will go back to the drawing board to ensure that we do a rights first then a subsequent public offer, but ensuring that we do it before the end of Q1 2025. 

A few months ago, the firm had a facts behind the figures session on the NGX and dropped its 9M 2024 results. Here are my thoughts.