International Breweries PLC, a subsidiary of AB InBev, the world’s largest brewer, has announced that non-shareholders will now have the opportunity to participate in its ongoing rights issue.
The brewer, renowned for its portfolio of popular beverage brands, disclosed this development in a statement released on Thursday.
According to the statement, non-shareholders can now acquire traded rights on the floor of the Nigerian Exchange through accredited stockbrokers, effectively expanding the pool of potential investors in the rights issue.
International Breweries PLC initiated the rights issue last month, offering existing shareholders the opportunity to acquire additional shares at a discounted price.
With the launch of the rights issue, shareholders were offered six new ordinary shares for every one existing share held, at an issue price of N3.65 each. The offering, which commenced on May 21, 2024, is scheduled to close on June 10, 2024.
The decision to allow non-shareholders to participate in the rights issue underscores the company’s commitment to fostering inclusivity and maximizing shareholder value.
By extending the opportunity to non-shareholders, International Breweries PLC aims to attract a diverse range of investors who share its vision for long-term growth and sustainability.
David Tomlinson, the Finance Director of International Breweries, said the company is dedicated to creating sustainable value for its shareholders while reinforcing its position in the Nigerian beverage industry.
“We are committed to creating sustainable value for our shareholders while fortifying our position in the Nigerian beverage industry. Together, we will continue to brew success, deliver long-term value for our shareholders, and create a future with more cheers,” stated Tomlinson.
The net proceeds from the rights issue are expected to be utilized by International Breweries PLC to settle its outstanding US dollar-denominated loan and provide working capital support.
The company’s strategic utilization of the funds reflects its focus on strengthening its financial position and driving future growth initiatives.
With the tradability of the rights now available on the floor of the Nigerian Exchange, shareholders and non-shareholders alike can benefit from enhanced liquidity and accessibility throughout the offer period.
This move not only facilitates broader participation but also ensures that investors have ample opportunity to capitalize on the company’s growth prospects.
