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Nigerian Breweries Plc has reportedly received clearance from the Securities and Exchange Commission (SEC) and the Nigerian Exchange Limited (NGX) to proceed with a N599.1 billion rights issue, following approval from its shareholders.
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The rights issue involves offering a total of 22,607,491,232 Ordinary Shares of 50 kobo each to shareholders registered as of the Qualification Date, which is set for 12 July 2024.
Shareholders will be entitled to acquire eleven new Ordinary Shares for every five shares they currently hold at an issue price of N26.50 per share.
The move is part of Nigerian Breweries’ broader Business Recovery Plan, designed to enhance the company’s capital base.
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The funds raised will be used to address foreign exchange-related exposures, reduce bank borrowings, and improve the overall financial flexibility of the company.
This, in turn, is expected to drive business growth and ensure long-term sustainability.
The Managing Director of Nigerian Breweries, Hans Essadi, explained in a statement that the issue represents an opportunity for shareholders to support the company’s strategic vision and participate in the next phase of its growth.
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Essaadi disclosed that the proceeds of the issue will be channelled towards payment of its foreign and local currency-denominated obligations.
He also added that it will eliminate foreign exchange risk and revaluation losses and enhance long-term profitability and sustainable value creation for its shareholders.
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