Nigerian Breweries to Raise N600bn from Shareholders
Due to the need to raise its capital profile, Nigerian Breweries (NB) Plc will be raising N600 billion from its shareholders. Those shareholders that wish to exercise their first instance right to purchase more shares from the company.
The management has announced plans to raise about ₦600 billion by way of rights issues in the coming months. The company announced to the Nigerian Exchange Limited and the investing public that, on April 2, 2024, at a specially called meeting of the Board of Directors of the Company, the Board resolved to recommend to shareholders at the upcoming Annual General Meeting that up to N600 billion in capital be raised.
The planned right issues is subject to regulatory approvals. The company stated that the proceeds from the rights issue will aid in reducing the significant debt burden that results from the devaluation of the naira and the high cost of funds, particularly with regard to the company’s debts. This will lead to a healthier balance sheet.
The Board is confident that it will be able to return the company to a sustainable profitability path in the near future with ongoing cost reductions and other operational efficiency initiatives.
The Board also resolved to recommend to shareholders at the AGM scheduled for 26th of April 2024, the increase in the Company’s share capital to take care of the new shares to be allotted under the Rights Issue. #Nigerian Breweries to Raise N600bn from Shareholders
