Nigerian Breweries (NB) Plc would be soliciting N600 billion from its shareholders in order to increase its capital profile. The shareholders who want to buy additional shares from the corporation in the first instance may do so.
In the upcoming months, the management intends to raise around ₦600 billion through rights issuance. At a specially called meeting of the Board of Directors of the Company on April 2, 2024, the Board resolved to recommend to shareholders at the upcoming Annual General Meeting that up to N600 billion in capital be raised. The announcement was made to the Nigerian Exchange Limited and the investing public.
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.
