THUR JULY 09 2026-theGBJournal| International Breweries Plc plans to restructure its share capital in a move aimed at eliminating accumulated losses of ₦191.03 billion and restoring its ability to pay dividends, while also returning excess capital to shareholders.
The proposal, which will be presented to shareholders for approval at the company’s forthcoming Annual General Meeting, involves reducing the brewer’s share premium account to offset negative retained earnings before undertaking a further capital reduction to distribute surplus funds to investors, subject to regulatory approvals and confirmation by the Federal High Court.
International Breweries Plc said, in a statement signed by the Company Secretary / General Counsel, Temitope Oluwatosin, it is proposing to reconstruct its share capital through a two-step process involving the elimination of negative retained earnings and the return of excess capital to shareholders.
The company said the transaction will be implemented under the provisions of Section 131 of the Companies and Allied Matters Act, 2020 (as amended), subject to obtaining the necessary regulatory approvals and confirmation by the Federal High Court.
Although the brewer has returned to profitability, it said it remains unable to declare dividends because of accumulated losses of ₦191,032,749,000 as of the 2025 financial year.
To address this, International Breweries plans to apply part of the balance in its Share Premium Account to eliminate the accumulated losses, thereby restoring distributable reserves and re-establishing the company’s capacity to pay dividends from future profits.
Following the write-off of the accumulated losses, the company proposes a further reduction of its Share Premium Account to facilitate a return of capital to shareholders.
The amount payable per ordinary share will be distributed on a pro rata basis, with the final payment determined by the total amount approved by the Board of Directors for distribution from the Share Premium Account.
Shareholders will vote on the proposed share capital reduction at the forthcoming Annual General Meeting.
International Breweries Plc is part of Anheuser-Busch InBev, the world’s largest brewer with a portfolio of more than 500 brands. The company said the proposal forms part of efforts to strengthen its balance sheet while positioning it to resume shareholder distributions after years of accumulated losses.
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