Olufemi Adeyemi
In accordance with the approval granted by its shareholders, Nigerian Breweries Plc has successfully secured the requisite authorization from the Securities and Exchange Commission (SEC) and the Nigerian Exchange Limited (NGX) to proceed with a Rights Issue aimed at raising N599.1 billion.
The company is offering a total of 22,607,491,232 Ordinary
Shares, each valued at 50 kobo, to shareholders listed in the register as of
the Qualification Date, which is set for July 12, 2024.
The Rights Issue will allow shareholders to acquire eleven
(11) new Ordinary Shares for every five (5) Ordinary Shares they hold as of the
Qualification Date, at a price of N26.50 per share.
This initiative is part of Nigerian Breweries’ Business
Recovery Plan aimed at strengthening its capital structure by reducing debt,
mitigating certain foreign exchange risks, and lowering bank borrowings.
This strategy will provide the company with enhanced
financial flexibility to foster growth and ensure continuity.
During a signing ceremony in Lagos, Mr. Hans Essadi, the
Managing Director of Nigerian Breweries, emphasized that this Rights Issue
offers shareholders a chance to align with the company’s strategic objectives
and engage in its forthcoming growth phase.
Essadi also noted that the funds raised will be utilized to
settle both foreign and local currency obligations, thereby minimizing foreign
exchange risks and revaluation losses, ultimately contributing to long-term
profitability and sustainable value for shareholders.
In his address, Mr. Olutade Olaegbe, Managing Director of
Vetiva Advisory Services Limited, praised the leadership of Nigerian Breweries
for their forward-thinking approach and dedication to implementing the Issue.
He expressed gratitude to the Company for placing their
trust in Vetiva Advisory Services Limited and Stanbic IBTC Capital Limited for
guidance on this significant transaction.
Mr. Olaegbe conveyed his belief that this Issue would
inspire other multinational corporations to engage with the equity capital
markets to achieve their strategic goals.
Vetiva Advisory Services Limited and Stanbic IBTC Capital
Limited are serving as the Lead Issuing House and Joint Issuing House for the
Issue, respectively, to facilitate the management of the process.
The acceptance list for the Issue is anticipated to open on
September 2, 2024, and close on October 11, 2024.
Detailed terms of the Issue will be outlined in a Rights
Circular that will be sent directly to eligible shareholders, which will
include a Provisional Allotment Letter and an Acceptance Form.
All shareholders are encouraged to review the Rights
Circular and seek advice from their Stockbroker, Fund/Portfolio Manager,
Accountant, Banker, Solicitor, or any other professional advisor if they have
any questions before making a subscription.
Nigerian Breweries Plc boasts an extensive range of premium brands. The company introduced Star lager beer in 1949, which was succeeded by Guider lager beer in 1970. In 1976, Maltina, a nutritious malt beverage, was launched, followed by Legend Extra Stout in 1992 and Amstel Malta, another malt drink, in 1994.