Anheuser-Busch InBev (AB InBev) is said to have committed to investing more than N123bn in its Nigerian operation.

According to a report by the Nations’ Newspaper, sources at the weekend said AB InBev was in support of the rights issue planned by International Breweries Plc, its Nigerian subsidiary and had committed to participating fully in the new capital raising exercise.

The capital raising comes on the heels of growing debt at the brewing company as it seeks to grow its presence in the Nigerian beer market and take market share from its rivals, Nigerian Breweries Plc and Guinness Nigeria Plc. The company recorded a net loss of N4bn in fiscal year 2018 and the losses have continued into the first-nine months of 2019, recording N16.4bn in net loss.

According to the report, International Breweries will raise N164.39 billion through a rights issue of 18.266 billion ordinary shares of 50 kobo each at N9 per share which will be pre-allotted on the basis of 17 new ordinary shares of 50 kobo each for every eight ordinary shares of 50 kobo each held as at the close of business on November 6, 2019. With the rights’ ratio, about 13.72 billion ordinary shares of 50 kobo each will be pre-allotted to AB Inbev.

International Breweries has filed for final regulatory approvals for the new capital raising, after shareholders approved the recapitalisation exercise.

AB InBev holds 75.1% equity stake in International Breweries, with the Anambra State Government holding a 4.7% stake, while the remaining 20.2% equity stake is held by other minority shareholders.

International Breweries’ brands include Hero Lager, Trophy Lager, Beta Malt, Grand Malt and Budweiser amongst others.