Guinness Nigeria’s $126 mln share sale oversubscribed

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L-R Chief Executive, Stanbic IBTC Capital, Funso Akere; Executive Director, Capital Markets, Nigeria Stock Exchange, Haruna Jalo-Waziri; Chairman, Guinness Nigeria Plc, Babatunde Savage and Managing Director, Guinness Nigeria Plc, Peter Ndegwa; at the facts behind the Issue at the NSE to announce Guinness Nigeria's N40bn Rights Issue in Lagos on Tuesday, July 25, 2017.

LAGOS, Oct 4 – Guinness Nigeria’s 39.70 billion naira ($126 mln) share sale to existing shareholders was 116 percent subscribed, the company said on Wednesday.

The brewer, the local unit of the world’s leading spirit maker Diageo, said in a statement it sold five new shares from the company to shareholders for every 11 held, at 58 naira each.

The company, which is 54 percent owned by Diageo, said two shareholders applied for 50 million shares and above during the rights issue.

Diageo has said it was willing to take up its rights in the share issue to maintain its shareholding.

The company had been seeking to raise funds to strengthen its balance sheet after it posted its first annual loss in 30 years in the 12 months to June 2016.

Guinness Nigeria shares traded flat on Wednesday at 98.55 naira on the Lagos bourse, up about 18 percent so far this year.

$1 = 315.00 naira Reporting by Chijioke Ohuocha; Editing by Edmund Blair

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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