By Dipo Olowookere
Shareholders of Nigerian Breweries Plc have been an opportunity to increase their equities in the company through a rights issue.
The exercise commenced on Monday, September 2, 2024, and is expected to close on Friday, October 11, 2024, details of the rights issue disclosed.
Business Post reports that the brewery giant is offering existing investors 11 new shares for every five held at a unit price of N26.50, with the qualification date of July 12, 2024.
A total of 22,607,491,232 shares are involved in this capital raise scheme of Nigerian Breweries, makers of several iconic brands in the local market.
The company disclosed that proceeds from the rights issue would be used to “reduce the increasing debt burden and attendant financing costs.”
Recall that not too long ago, Nigerian Breweries acquired an 80 per cent stake in Distell Wines and Spirits Nigeria Limited (DWSN) and 100 per cent of Heineken Beverages’ import business in Nigeria, increasing its operations to include the production, importation, marketing, and distribution of wines, spirits, and cider products, further strengthening its market position.
The company is a major player in the different categories of the food and drink business, boasting a diverse portfolio of high-quality brands across lager, stout, non-alcoholic, spirit, and wine classes.
However, the tough macroeconomic environment it operates in the country has negatively impacted its bottom line as its consumers battle with low purchasing power.