Nigerian Breweries Plc has extended the acceptance period for its ongoing Rights Issue from the original closing date of October 11, 2024, to October 18, 2024.
The extension was approved by the Securities and Exchange Commission (SEC) and aims to accommodate the normal working days disrupted by public holidays during the initial subscription period, which began on September 2, 2024.
This announcement was made in an official statement signed by the company’s Secretary, Uaboi Agbebaku, seen by THE WHISTLER.
The statement emphasized that the extension is intended to provide shareholders with adequate time to participate in the Rights Issue.
“Nigerian Breweries Plc is pleased to notify its esteemed shareholders and the Nigerian Exchange Limited (NGX) that the Acceptance Period for its Rights Issue, originally scheduled to close on 11th October 2024, has been extended to 18th October 2024, following approval from the Securities and Exchange Commission.
“The extension allows us to accommodate the normal working days impacted by public holidays observed during the initial Acceptance Period,” the statement read.
The company also highlighted that during this extended period, restrictions on insider trading will remain in effect. Insiders will only be allowed to participate in the Rights Issue, in line with the non-dealing period rules set by NGX concerning the company’s unaudited financial statements for the period ended September 30, 2024.
Nigerian Breweries Plc is seeking to raise N599.1bn through the Rights Issue to address its financial obligations.
The offering consists of 22.6bn ordinary shares at a price of N26.50 per share, with shareholders entitled to buy 11 new shares for every five they currently hold.
During a recent “Facts Behind the Rights Issue” presentation in Lagos, Agbebaku explained that the proceeds will be used to settle the company’s significant financial obligations, including N328bn in foreign exchange (FX) debt and N263bn in local repayments.
Agbebaku stated that clearing these obligations is crucial to eliminating FX losses from the company’s balance sheet and reducing its interest burden on local debt, particularly in light of Nigeria’s 26 per cent Monetary Policy Rate (MPR).
“Our FX losses have been considerable, and settling these obligations will stabilize our profit and loss accounts. Additionally, reducing local bank debts will eventually lower our interest burden, which has posed a substantial financial strain,” Agbebaku said.
Nigerian Breweries has faced significant financial challenges in 2024, reporting a loss after tax of N85.3bn in the first half of the year. The loss was driven by rising inflation, foreign exchange costs, operational expenses, and broader economic pressures.