Nigerian Breweries, NB Plc, has finalized plans to raise capital through a rights issue.

Nigerian Breweries
Nigerian Breweries

In a statement submitted to the Nigerian Exchange Limited (NGX), the company announced: “This serves to notify the investing public that during a specially convened meeting of the Board of Directors of the Company held on April 2, 2024, the Board decided to propose to shareholders at the next Annual General Meeting (“AGM”) the raising of up to N600 billion in capital through a Rights Issue, subject to regulatory approvals.”

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The statement, signed by Uaboi G. Agbebaku, Company Secretary of NB, explained: “Due to the adverse effects of the naira devaluation and the high cost of funds on the Company’s capital structure, particularly its debts, the proceeds from the Rights Issue will aid in alleviating the significant debt burden, thereby leading to a healthier balance sheet.

Alongside ongoing cost-saving initiatives and other operational efficiency measures, the Board is confident in steering the Company towards sustainable profitability shortly.

“The Board also decided to propose to shareholders at the AGM, scheduled for April 26, 2024, an increase in the Company’s share capital to accommodate the new shares to be issued under the Rights Issue.”

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