THUR APRIL 04 2024-theGBJournal| Nigerian Breweries Plc has signified its intention to the raise up to N600 billion capital by way of Rights Issue, subject to regulatory approvals
The decision was taken at specially convened meeting of the Board of Directors of the Company held on the 2nd of April 2024, where the Board resolved to recommend to shareholders at the next Annual General Meeting (AGM) their intention.
”Due to the negative impact of the devaluation of the naira and the high cost of funds on the Company’s capital structure, especially on the Company’s debts, the proceeds from the Rights Issue will help to reduce the huge debt burden arising thereby leading to a healthier balance sheet,” the Company said.
Nigerian Breweries said, coupled with ongoing cost savings and other operational efficiency efforts, the Board is optimistic about steering the Company back to the path of sustainable profitability in the near future.
The Board also resolved to recommend to shareholders at the AGM scheduled for the 26th of April 2024, the increase in the Company’s share capital to take care of the new shares to be allotted under the Rights Issue.
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