Nigerian Breweries (NB) Plc has announced plans to raise N599.1 billion from its existing shareholders through a rights issue. This follows the approval from shareholders in April 2024, as well as regulatory clearances from the Securities and Exchange Commission (SEC) and NGX Regulation Limited.
The company is offering 22.607 billion ordinary shares at 50 kobo each to shareholders listed in the register of members as of the qualification date, July 12, 2024. The rights issue will be offered on the basis of 11 new shares for every five shares held, at an issue price of N26.50 per share. The acceptance period is set to open on September 2, 2024, and will close on October 11, 2024.
According to Nigerian Breweries, the rights issue is a critical component of its Business Recovery Plan, aimed at bolstering the company’s capital structure by reducing foreign exchange exposures and bank borrowings, thus enhancing financial flexibility to drive business growth and sustainability.
Speaking at the signing ceremony, Hans Essadi, Managing Director of Nigerian Breweries, highlighted that the rights issue presents an opportunity for shareholders to support the company’s strategic vision and participate in its growth trajectory. Essadi stated that the funds raised will be used to settle both foreign and local currency obligations, which will help mitigate foreign exchange risks, minimize revaluation losses, and enhance long-term profitability and value for shareholders.
Olutade Olaegbe, Managing Director of Vetiva Advisory Services Limited, praised Nigerian Breweries for its leadership and foresight in pursuing the rights issue. He expressed appreciation to the company for entrusting Vetiva Advisory Services and Stanbic IBTC Capital Limited with advising on this significant transaction, and noted that the success of the issue could inspire other multinational companies to consider the equity capital markets for their strategic funding needs.
DNews Info is a trusted source for breaking news, insightful commentary, and in-depth coverage of events across Nigeria and beyond. With a commitment to delivering accurate, timely, and engaging stories, we aim to keep our readers informed and empowered. Stay connected for the latest updates in politics, business, entertainment, and more.
Discover more from DnewsInfo
Subscribe to get the latest posts sent to your email.