Guinness Nigeria Plc, held its Extra-Ordinary General Meeting (EGM) today,Tuesday and received the approval of its shareholders for a proposed Rights Issue. The meeting, during which other resolutions were passed, took place in Lagos and was well attended by local shareholders and representatives of international shareholders.
Speaking on the meeting, Chairman, Guinness Nigeria Plc, Babatunde Savage said: “Guinness Nigeria has been in this country for over 60 years and, in that time, we have continued to add significant economic and social value to Nigeria and Nigerians.
“We believe this Rights Issue will positively impact on the financial performance of Guinness Nigeria and help mitigate the impact of increasing finance costs in what continues to be a challenging economic environment in Nigeria. I call on all my fellow shareholders to take this opportunity and support the company’s objectives,” he added.
Also speaking at the meeting, Managing Director/CEO, Guinness Nigeria Plc, Peter Ndegwa revealed that the company has good fundamentals and potentials for the future. In his words, “Guinness Nigeria is a company with excellent fundamentals and we have the right strategy and the right people to grow our business for the future. This Rights Issue in combination with our productivity and cost optimization drive will help provide the fuel to continue to build this business for Nigeria and Nigerians.”
Guinness Nigeria Plc which is a subsidiary of Diageo plc, had announced at the end of 2016, its intention to offer a Rights Issue as part of plans to optimise its balance sheet and improve its financial flexibility. With the approval of its shareholders, the company is now in a position to raise up to N40bn as fresh cash injection into the business operations.
Also, this week, the company is expected to release its first half results for the 6-month period ended 31st December 2016.