In­ter­na­tional Brew­eries closes N165bn rights is­sue

The Punch - - CAPITAL MARKET -

n T E R n A T i O n A L Brew­eries Plc has said its n165bn rights is­sue will close to­day, De­cem­ber 24, 2019.

The com­pany said in a state­ment on Sun­day that it re­ceived the ex­press ap­proval from its share­hold­ers and rel­e­vant agen­cies of gov­ern­ment in­clud­ing the Se­cu­rity and Ex­change Com­mis­sion.

The Com­pany Sec­re­tary/ Le­gal Coun­sel, in­ter­na­tional Brew­eries, Muyiwa Ay­o­jimi, said the com­pany was of­fer­ing 18,266,206,614 units of or­di­nary shares of 50 kobo each at n9 per share.

He said the of­fer opened on De­cem­ber 5, 2019.

Ac­cord­ing to him, for ev­ery eight shares held by share­hold­ers whose names ap­pear in the reg­is­ter of mem­bers of the com­pany as of novem­ber 6, 2019, an of­fer of 17 or­di­nary shares is made.

The state­ment noted that the of­fer, which had been well re­ceived and sub­scribed to, was still open and avail­able to ex­ist­ing share­hold­ers to take ad­van­tage of, be­fore the clos­ing date.

The state­ment read in part, “Through the rights is­sue, the com­pany’s cap­i­tal struc­ture is ex­pected to be re­mark­ably changed as long-term debt is re­placed with eq­uity, thereby eas­ing the bur­den of in­ter­est pay­ments, in­creas­ing man­age­ment’s flex­i­bil­ity as well as re­mov­ing volatil­ity in earn­ings.

“This of­fer, which is cur­rently the largest rights is­sue in nige­ria, is to have its full im­pact re­flected in 2020 while pre­sent­ing a pos­i­tive out­look for div­i­dends for share­hold­ers in 2021.”

The com­pany said with a fair post rights is­sue val­u­a­tion range of n471bn to n504bn, the rights is­sue was most likely to be­come the sev­enth most cap­i­talised com­pany on the nige­rian Stock Ex­change.

it added that the par­ent com­pany, Abin­bev, by the rights is­sue, had a long-term out­look for nige­ria.

“Abin­bev has in­vested in ca­pac­ity ex­pan­sion, about n90bn ($250m) in the Sagamu plant and will be in­ject­ing n124bn ($341m) via the rights is­sue,” the state­ment added.

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