Nigeria: Guinness Nigeria to use rights issue to help repay outstanding loan obligations

Guinness Nigeria Plc has revealed its plans for N39,700,688,598 rights issue which opened on, Monday, July 24, saying it will be utilised to help repay outstanding loan obligations, and improve the operational and financial flexibility, WorldStage reported.

Guinness Nigeria officials were at the Nigerian Stock Exchange on July 25 to present a detailed breakdown of the offer of 684.5 million ordinary shares to existing shareholders to raise N39,700,688,598 .

At the fact behind the offer which attracted a cross section of stakeholders including: shareholders, fund/portfolio managers, regulators, auditors, issuing houses and registrars, the company reiterated that the offer will close on Wednesday 30 August, 2017, and has an issue price of N58 per share.

The offer is in the ratio of five new ordinary shares for every eleven ordinary shares held by shareholders whose names appeared on the register of members of the company at the close of business on Wednesday, 15 March, 2017.

At its Extra-ordinary General Meeting in January 2017, shareholders of the company had authorized the Board of Directors to proceed with the Issue.

Peter Ndegwa, MD of Guinness Nigeria Plc explained that the Rights Issue, already approved by the Securities and Exchange Commission and Nigerian Stock Exchange, will allow the company to deliver on its strategic objectives and give all its shareholders a unique opportunity to increase their shareholding in the company.

“Our expectation is that funds raised will help mitigate the impact of increasing finance costs, optimise our balance sheet and improve the company’s financial flexibility,” Ndegwa said

Babatunde Savage, Chairman, Guinness Nigeria Plc, stated that the process was part of the company's long term plans to continue to invest and return to profitability.

He said, "We have been in Nigeria for 67 years and, while it has been challenging in recent times for many Nigerian businesses, we remain committed to this market as evidenced by our decision to offer this Rights Issue.”

He also expressed gratitude to shareholders various other stakeholders for the support that the company have received from them up to this point.

26 July, 2017