Nigerian Breweries to raise N600bn capital through rights issue

Nigerian Breweries, NB Plc, has concluded arrangement to raise capital through rights issue.

The company in a statement sent to the Nigerian Exchange Limited, NGX, said: “This is to inform the investing public that at a specially convened meeting of the Board of Directors of the Company held on the 2nd of April 2024, the Board resolved to recommend to shareholders at the next Annual General Meeting (“AGM”), the raising of up to N600 billion capital by way of Rights Issue, subject to regulatory approvals.”

The statement signed by Uaboi G. Agbebaku, Company Secretary, NB stated: “Due to the negative impact of the devaluation of the naira and the high cost of funds on the Company’s capital structure, especially on the Company’s debts, the proceeds from the Rights Issue will help to reduce the huge debt burden arising thereby leading to a healthier balance sheet. Coupled with ongoing cost savings and other operational efficiency efforts, the Board is optimistic about steering the Company back to the path of sustainable profitability in the near future.

“The Board also resolved to recommend to shareholders at the AGM scheduled for the 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.”