SEC approves Nigerian Breweries’ N600bn Rights Issue
The Securities and Exchange Commission (SEC) approves Nigerian Breweries’ N600bn Rights Issue as largest brewer struggles on FX debt
The application for Nigerian Breweries Plc Rights Issue of 22,607,491,232 Ordinary Shares of 50 kobo each at N26.50 per share has been approved by the SEC, the apex regulator of the nation’s capital market.
The company plans to raise N600 billion through the issue to clear its N500 billion foreign exchange (FX) debt. The company has been battling with foreign exchange (FX) losses, as the country continues to struggle with dollar scarcity.
“The tough business landscape characterised by double-digit inflation rates, naira devaluation, FX challenges, and diminished consumer spend has taken its toll on many businesses, including ours,” said Hans Essaadi, Managing Director/Chief Executive Officer, Nigerian Breweries Plc.
The brewer is offering to existing shareholders eleven (11) new Ordinary Shares for every existing five (5) Ordinary Shares held as at the close of business on Friday, July 12, 2024.
Vetiva Advisory Services Limited and Stanbic IBTC Capital Limited are issuing houses/financial advisers of the Rights Issue which was approved on August 22, while the stockbrokers are Stanbic IBTC Stockbrokers Limited; Vetiva Securities Limited; Foresight Securities & Investments Limited; Greenwich Securities Limited; and Lighthouse Capital Limited.
Nigerian Breweries Plc continues to navigate the challenging operating environment characterised by soaring inflation, exchange rate volatility, security challenges, elevated input costs, and rising cost of living.
It recently announced its unaudited and provisional results for the half year (six months) ended June 30, 2024 which showed the group reported Loss after Tax (LAT) of N85.199billion as against LAT of N47.599billion in H1 of 2023, representing an increase loss of 79 percent.
Though, the brewer’s group revenue grew by 72.9 percent to N479.767billion from N277.419billion in H1’2023, its net finance expense spiked by 60.5percent to N154.480billion from N96.223billion.
