The Nigerian Breweries Plc has completed the necessary steps to raise capital through a rights issue.
In a statement sent to the Nigerian Exchange Limited, the company stated: “To inform the investing public, the Board of Directors at a specially convened meeting on the 2nd of April 2024, resolved to recommend the raising of up to N600 billion capital through a Rights Issue at the next Annual General Meeting (“AGM”), subject to regulatory approvals."
Uaboi G Agbebaku, Company Secretary, NB, stated in the signed statement that the Rights Issue proceeds will assist in alleviating the debt burden resulting from the devaluation of the naira and high cost of funds. This will lead to a healthier balance sheet, and combined with cost savings and operational efficiency efforts, the Board is hopeful about restoring the Company to sustainable profitability soon.
The Board also agreed to recommend to shareholders at the AGM scheduled for the 26th of April 2024, the increase in the Company’s share capital to provide for the new shares to be allocated under the Rights Issue.
