Guinness Nigeria Plc, said on Wednesday that its share sale to existing shareholders to raise N39.7bn ($126m) was oversubscribed by 116%.
The Nigerian subsidiary of drinks maker Diageo Plc said it sold five shares from the company for every 11 held by shareholders, at N58 naira per share.
Guinness Nigeria Plc, said it plans to broaden its participation in the value segment of the beer market as part of its strategy to return to profitability.
The maker of Guinness Extra Stout made this known in a rights Issue prospectus it released to shareholders in July. The company is seeking to raise N39.7bn ($109m) to enable it optimize its capital structure and reduce outstanding debt. The firm expects subscription to the rights issue and payment of debt obligation will be completed by the fourth quarter of 2017.
Brewing giant Guinness Nigeria Plc, on Tuesday unveiled application for subscription of its proposed N39.7bn ($126m) rights issue.
The company’s officials were at the Nigerian Stock Exchange (NSE) to present a detailed breakdown of the offer of 684.5m ordinary shares to Guinness Nigeria current shareholders to raise N39.7bn.
Guinness Nigeria Plc, announced on Tuesday it had received clearance from the Nigerian Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) to issue new shares.
The funds raised from the share sale, the company said will go to implementing its strategy in the context of ongoing external economic challenges.
Guinness Nigeria Plc, said on Wednesday it had sought approval from the Nigerian Stock Exchange (NSE) for a new share sale which it hopes would raise N39.77bn ($130m).
The company which has posted back-to-back losses in the last three quarters said it would issue the shares to existing shareholders at N58 per share, which represents a 17% discount on Wednesday’s closing of N70 per share. Existing shareholders would be offered five new shares for every 11 held as of Wednesday closing.
Guinness Nigeria Plc, on Tuesday received approval from its shareholders for a proposed N40bn ($127m) rights issue.
At an Extra-Ordinary General Meeting (EGM) held in Lagos on Tuesday, Guinness Nigeria’s shareholders approved the request.
Guinness Nigeria board chairman, Mr. Babatunde Savage, said the shareholders’ approval would enable the company raise up to N40bn as fresh cash injection into the business operations.
Guinness Nigeria Plc said it plans to hold an Extraordinary General Meeting (EGM) of its shareholders in Lagos on January 24th 2017 to approve resolutions for a N40bn rights issue.
According to a statement released by the company, it believes the rights issue will allow it optimize its balance sheet, while improving its financial and operational flexibility.
