International Breweries closes N165bn rights issue
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.