E-Malt.com News article: Nigeria: International Breweries to reduce share capital

International Breweries Plc has announced plans to undertake a share capital reduction to eliminate negative retained earnings and restore its ability to pay dividends, while also proposing a return of excess capital to shareholders, Proshare reported on July 9.

In a corporate disclosure to Nigerian Exchange Limited (NGX), the company stated that the proposed capital restructuring will be implemented in accordance with Section 131 of the Companies and Allied Matters Act (CAMA), 2020 (as amended), subject to regulatory approvals and confirmation by the Federal High Court.Africans & Diaspora.

According to the company, the proposed transaction comprises two key elements: the elimination of its negative retained earnings through the application of a portion of its Share Premium Account, and a subsequent reduction of the Share Premium Account to facilitate a pro-rata return of excess capital to shareholders.

Although International Breweries returned to profitability in the 2025 financial year, it disclosed accumulated losses of N191.03 billion as of FY2025, which continue to prevent the company from declaring dividends. By offsetting these retained losses against its Share Premium Account, the company expects to restore distributable reserves and re-establish its capacity to pay dividends from future earnings.

Following the proposed elimination of the accumulated losses, the company intends to undertake a further reduction of its Share Premium Account to return excess capital to shareholders. The amount to be distributed per ordinary share will be determined on a pro-rata basis, based on the total amount approved by the Board for distribution.

International Breweries noted that shareholders will be asked to approve the proposed share capital reduction at the company's forthcoming Annual General Meeting (AGM).



09 July, 2026