Nigerian Breweries Plans N600bn Rights Issue to Strengthen Capital Base

Nigerian Breweries Plc has revealed plans to raise N600 billion through a rights issue to strengthen its capital base and address financial challenges exacerbated by currency devaluation and high borrowing costs.

The decision was announced in a corporate notice filed with the Nigerian Exchange Limited on Wednesday following a board meeting.

The brewer cited the adverse effects of naira devaluation and expensive borrowing on its capital structure, especially concerning debts.

The proceeds from the rights issue are anticipated to alleviate the significant debt burden, thereby fostering a healthier balance sheet.

Coupled with ongoing cost-saving initiatives and operational efficiencies, the company’s board expresses confidence in steering Nigerian Breweries towards sustainable profitability.

In addition to the rights issue, the board plans to seek shareholders’ approval for an increase in the company’s share capital to accommodate the new shares issued.

The move aligns with the company’s strategy to weather macroeconomic challenges and leverage its extensive experience in the Nigerian market to drive long-term value for shareholders and stakeholders amidst a challenging economic landscape.