Nigerian Breweries Plc is raising N599.1 billion through a rights issue to address outstanding Foreign Exchange (FX) debts. The rights issue, which began on September 2, 2024, will close on October 11, 2024.
At the “Facts Behind the Rights Issue” event held at the Nigerian Exchange Limited (NGX) on Tuesday, Ben Wessels Boer, the finance director, emphasized the company’s commitment to reducing debt costs. He noted efforts to secure the most favorable local loans and urged shareholders to fully subscribe to the rights issue, helping to maintain their shareholding proportions.
Hans Essaadi, the managing director and CEO, discussed the company’s strategy to mitigate future FX exposure and ensure long-term profitability. He highlighted that while current overcapacity is challenging, the company is well-positioned for future market demand recovery.
In its unaudited half-year results for the period ending June 30, 2024, Nigerian Breweries reported a Loss After Tax (LAT) of N85.2 billion, a significant increase from N47.6 billion in the same period of 2023. Despite a 72.9% increase in group revenue to N479.8 billion, net finance expenses surged by 60.5% to N154.5 billion.
The rights issue will offer 22,607,491,232 shares at N26.50 each, with the offer being eleven new shares for every five existing shares held as of July 12, 2024. Jude Chiemeka, CEO of Nigerian Exchange Limited, praised Nigerian Breweries for its transparency and engagement with the capital markets through the NGX platform.
