Nigerian Breweries Plc has notified the Nigerian Exchange Limited and the investing public that the Board is proposing to raise of up to N600 billion capital by way of Rights Issue, subject to regulatory approvals.
In a notice to the Nigerian Exchanged signed by the Company Secretary, Uaboi G. Agbebaku, the Company stated thus:
“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”.