Following shareholder approval in April 2024, Nigerian Breweries Plc (“Nigerian Breweries” or the “Company”) has now obtained clearance from both the Securities and Exchange Commission and NGX Regulation Limited.
The Company intends to raise ₦599,098,517,648.00 (Five Hundred and Ninety-Nine Billion, Ninety-Eight Million, Five Hundred and Seventeen Thousand, Six Hundred and Forty-Eight Naira) through a Rights Issue (the “Issue”).
Nigerian Breweries is offering a total of 22,607,491,232 (Twenty-Two Billion, Six Hundred and Seven Million, Four Hundred and Ninety-One Thousand, Two Hundred and Thirty-Two) Ordinary Shares of 50 kobo each.
These shares will be available to shareholders listed in the register as of the Qualification Date, which is 12 July 2024.
The Issue will be structured as eleven (11) new Ordinary Shares for every five (5) Ordinary Shares held as of the Qualification Date, with each new share priced at ₦26.50.
This Rights Issue is a key component of Nigerian Breweries’ Business Recovery Plan, designed to strengthen the Company’s capital base by reducing its debt, eliminating foreign exchange risks, and decreasing bank borrowings.
These measures aim to provide the Company with greater financial flexibility to support business growth and continuity.
Vetiva Advisory Services Limited and Stanbic IBTC Capital Limited are serving as the Lead Issuing House and Joint Issuing House, respectively, to manage the Issue process. The acceptance period for the Issue will open on 2 September 2024 and close on 11 October 2024.
During the signing ceremony on 28 August 2024, Nigerian Breweries’ Managing Director, Mr. Hans Essadi, highlighted that the Issue provides shareholders with an opportunity to back the company’s strategic vision and take part in its next growth phase.
He also noted that the proceeds would be used to settle both foreign and local currency obligations, thereby mitigating foreign exchange risks and revaluation losses, and boosting long-term profitability.
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Mr. Olutade Olaegbe, Managing Director of Vetiva Advisory Services Limited, praised Nigerian Breweries for its forward-thinking leadership and commitment to executing the Issue.
He expressed appreciation for the trust placed in Vetiva Advisory Services Limited and Stanbic IBTC Capital Limited for this significant transaction and anticipated that it would encourage other global multinational companies to engage with the equity capital markets for their strategic goals.
Details of the Issue will be provided in a Rights Circular, which will be sent directly to eligible shareholders.
This circular will include a Provisional Allotment Letter and an Acceptance Form.
Shareholders are advised to read the Rights Circular carefully and consult their Stockbroker, Fund/Portfolio Manager, Accountant, Banker, Solicitor, or other professional advisers for guidance before making any subscription decisions.
