Nigerian Breweries, NB Plc, has reached an agreement to issue rights to raise fund.
In a communication to the Nigerian Exchange Limited, or NGX, the business stated: “This is to notify the investing public that, at a specially called meeting of the Company’s Board of Directors held on April 2, 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.”
Owing to the detrimental effects of the naira’s depreciation and the high cost of funds on the company’s capital structure, particularly on its debts, the statement, signed by Uaboi G. Agbebaku, Company Secretary, NB, said as follows: “The proceeds from the Rights Issue will help to reduce the huge debt burden arising thereby leading to a healthier balance sheet.” In the near future, the Board is confident that it will be able to return the Company to a sustainable profitability path thanks to continuous cost reductions and other operational efficiency initiatives.
In order to handle the additional shares that will be distributed under the rights issue, the Board additionally decided to suggest to shareholders at the AGM set for April 26, 2024, an increase in the company’s share capital.