Shareholders of International Breweries Plc (IBPlc) have approved the proposed rights issue by the company as well as the loan-to-equity conversion of $379.9 million owed its majority shareholder – Anheuser-Busch InBev (ABInBev).

They gave the approval at the company’s Extraordinary General Meeting (EGM) in Lagos.

The capital raise formed part of the company’s strategy to return to profitability. Proceeds of the offering, according to the company, would be deployed for the full and final settlement of its USD denominated loan, which was utilised to build its state-of-the-art plant – the largest in sub-Saharan Africa – in Ogun State.

Due to the constraints of sourcing US Dollars, other related foreign exchange (forex) volatility challenges, surge in operational costs and other macroeconomic impacts, International Breweries had difficulty paying down the loan over the years.

Addressing shareholders at the meeting, Chairman of the Board of Directors, HRM Igwe Nnaemeka Achebe, emphasised the full support of AB InBev for the shareholder’s loan, saying: “We project that the repayment of the loan will inject the desired equity to recapitalise the business, thereby setting it on the path to profitability, in addition to driving IBPLC’s value which will ultimately translate to better returns for our shareholders.

“Anheuser-Busch InBev (ABInBev) fully supports this process and has committed to taking up their rights in full. This decision, including threading the path of the shareholder loan, demonstrates ABInBev’s commitment to the success and sustainability of IBPLC, including its dedication to long-term presence and continuous strategic investments in Nigeria.”

Speaking at the meeting, Boniface Okezie, National Chairman, Progressive Shareholders Association of Nigeria (PSAN), said: “As shareholders, we are eagerly awaiting the commencement so we can take up the right issue. This is because after paying the loan, we know the company will start generating profit and start paying dividends to shareholders.

“We want to thank International Breweries and ABInBev for keeping faith with Nigeria despite the economic challenges. I appeal to the minority shareholders to endeavour to do what they can to participate in the rights issue.”

The National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), Moses Igbrude, said: “This decision we are taking today will enable us to drive more value for the company. IBPLC borrowed to build a world-class brewery and the profit the company makes has been used in servicing this debt. The board is taking the right step and we all support this resolution.”

Finance Director, International Breweries Plc, David Tomlinson, said: “Our company has been recording remarkable success with our quality product offerings and market share gains.  This right issue offer, including the shareholder loan, will make a meaningful impact in the profitability of our organisation.

On his part, the Managing Director, International Breweries Plc, Carlos Coutino, said: “IBPLC remains resolute in delivering worth, and innovation as well as contributing positively to the communities where we operate.

“Our commitment to transparency, accountability, and sustainable growth is unwavering. We believe in fostering a culture of mutual trust and collaboration, and your role as shareholders is important to this vision.”