Nigerian Breweries shareholders approve N600bn capital raise

The decision was taken at the 78th annual general meeting of the company on Friday in Lagos.According to the company, the proceeds from the rights issue will help reduce its debt burden, resulting in a healthier balance sheet.of N106 billion in 2023, largely induced by the impact of the devaluation of the naira on its foreign exchange transactions.an upward review in the prices of some products in its stock-keeping units to mitigate the impact of the rising cost of input.

According to the chairman, the aim of raising new capital totalling N600 billion is to allow Nigerian Breweries to clear its existing foreign exchange payables and a portion of its local bank facilities. Hiemstra said the majority shareholders, Heineken, have shown their willingness to support the recapitalisation exercise by taking up and paying for the portion of the shares allotted to it.“Following the challenging year 2023 and the present volatility of the Nigerian business environment, we are focused on our strategic recovery plan backed by parent company Heineken,” the chairman said.

Also speaking, Hans Essaadi, managing director and chief executive officer of Nigerian Breweries Plc, expressed gratitude to the shareholders for their support, emphasising the company’s dedication to providing sustained growth for its shareholders, despite the current economic difficulties and obstacles.

Source: Law Daily Report (lawdailyreport.net)

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