NB Plc N599.1 Billion Rights Issue to Eliminate Forex Exposure, Reposition Business Performance
Lagos, Nigeria. September 17,
2024. Nigerian Breweries Plc,
the foremost brewing company, has disclosed its intention to utilise the proceeds
from its N599.1 Billion Rights Issue to eliminate ovedue foreign exchange commitments,
thereby repositioning the company for optimum business performance that will
enable it to deliver value for its stakeholders.
The
company is offering 22.61 billion ordinary shares at 50k each, priced at N26.50
per share to its shareholders. The Rights Issue commenced on September 2, 2024, and will close on Friday,
October 11, 2024. The offer is open to all existing shareholders giving them
the opportunity to increase their shares in the company at the ratio of 11 new
shares for every five held at the close of business on July 12, 2024.
Speaking
during the “Facts Behind the N599.1 Billion Rights Issue” presentation at the
Nigerian Exchange Limited, NGX, on Tuesday, September 17, 2024, the Managing
Director of Nigerian Breweries Plc, Hans Essaadi, explained that the losses
recorded in its financial statements was due mainly to the impact of the currency
devaluation on foreign exchange denominated payables and higher interest
expenses.
“These
are tough times for our business. We started expanding our facilities two years
ago, for which FX commitments were required, with a view to future-proofing the
business. This led to our incurring a substantial debt due to the devaluation
of the naira. Despite this challenge amongst others, we believe that investing
in Nigeria is the right thing to do as the long-term fundamentals remain strong”
he said.
Essaadi
assured shareholders that the Rights Issue will return the company to the path
of net profitability and the resumption of dividend payments as soon as
possible, adding that the company was in a position to take advantage of an
improvement in the macro economic operating environment. He added that the company’s
expansion into the wine and spirits category through the acquision of Distell Wines
and Spirits Nigeria Limited was in furtherance of its commitment to grow
sustainable value for its shareholders.
Also
speaking during the presentation, the Chief Executive Officer of NGX, Jude
Chiemeka, noted that ‘Facts Behind the Figures/Issue’ remains a platform to
support its mission to enhance transparency and stimulate engagement in the
capital markets. He added that the NGX was delighted that Nigerian Breweries
Plc chose the platform to present its financial performance, operational
updates, and strategic business recovery plan including the N588.1 Billion Rights
Issue.
According
to Chiemeka, sharing timely and accurate data is essential for driving market
activity, as it strengthens trust and fosters greater participation. While
acknowledging the efforts of the company’s leadership in enhancing operations,
promoting business continuity, and restoring investor confidence amidst
economic challenges, he stated that its commitment to these goals reflects the
resilience and adaptability that are essential in today’s market environment.
In
his remarks, the Company Secretary & Legal Director, Nigerian Breweries
Plc, Uaboi Agbebaku, stated that the proceeds from the rights issue will be
used to eliminate all outstanding FX payables so that the company will no
longer be subject to the vagaries of devaluation.
“A
major part of the proceeds will be utilised for the repayment of overdue FX
obligations while the remaining will be used to repay and lower local debt (naira)
obligations, thereby reducing the interest burden on the company” he said.
#
Press contact
Corporate Affairs Director
Sade Morgan
About Nigerian Breweries PLC:
A member of the HEINEKEN Group, Nigerian
Breweries Plc is Nigeria’s pioneer and largest brewing company. Incorporated in
1946 as “Nigerian Brewery Limited,” the company made history in June 1949 when
the first bottle of STAR lager beer rolled out of its Lagos brewery bottling
line. Today, it has a rich portfolio of 19 high-quality brands (Heineken, Desperados,
Maltina, Life, Amstel Malta, Gulder, Fayrouz, and Legend) produced from nine
breweries and distributed nationwide.
Nigerian Breweries Plc is also the recipient of
several awards and recognition in other areas of its operations, including
product quality, marketing excellence, productivity and innovation, health and
safety, corporate social responsibility, and sustainability.
To learn more, visit the
Nigerian Breweries website: nbplc.com.
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