Nigerian Breweries has announced an extension of its ongoing rights issue, initially launched on September 2, 2024, and originally set to close on September 11, 2024.
The company revealed this update through a disclosure on the Nigerian Exchange (NGX) platform on September 10, 2024.
Signed by the Company Secretary, Uaboi G. Agbebaku, the notice outlined a new closing date of October 18, 2024, following approval from the Securities and Exchange Commission (SEC).
Reason for the Extension
Nigerian Breweries explained that the extension was necessary to account for working days lost due to public holidays.
“The extension of the acceptance period is to accommodate the normal working days activities that were disrupted by the public holidays that were observed in the course of the initially scheduled acceptance period,” the company stated.
This move aims to give shareholders more time and flexibility to participate in the rights issue.
During this extended period, the company emphasized that insider dealings would remain strictly limited to participation in the rights issue, as previously approved by the NGX.
This restriction is in line with the non-dealing period related to the company’s unaudited financial statements for the quarter ending September 30, 2024.
Shareholders are also encouraged to consult with their stockbrokers for further details about the rights issue.
Background
In August 2024, Nigerian Breweries received the necessary approvals from the Securities and Exchange Commission (SEC) and NGX Regulation Limited to proceed with its rights issue. This came after the company had already secured the backing of its shareholders during a meeting in April 2024.
- Through this rights issue, Nigerian Breweries aims to raise approximately N599.1 billion.
- The offering consists of 22,607,491,232 ordinary shares, each valued at 50 kobo, available to shareholders who were listed on the company’s register as of the qualification date, July 12, 2024.
- Vetiva Advisory Services Limited serves as the Lead Issuing House for the Issue, while Stanbic IBTC Capital Limited acts as the Joint Issuing House. Both firms support the Company in managing the entire issuance process.
- During a signing ceremony on August 28, 2024, Hans Essadi, Managing Director of Nigerian Breweries, outlined the significance of the rights issue for both the company and its shareholders.
- He described it as a means for shareholders to support the company’s long-term strategy and participate in its future growth trajectory.
- The funds generated through this initiative will be directed towards settling existing liabilities, both foreign and local.
- This move is expected to reduce the company’s exposure to risks associated with foreign exchange fluctuations, thereby strengthening its financial stability.