Nigerian Breweries Shareholders Approve N600 Billion Capital Raise at AGM


Shareholders of Nigerian Breweries Plc have given their unanimous approval for a capital raising initiative of N600 billion through a rights issue. The decision was reached during the company’s 78th Annual General Meeting held at the Muson Centre, Shell Hall, Onikan, Lagos.

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The Board of Directors now has the green light to proceed with the capital restructuring, allowing shareholders to acquire additional shares in proportion to their current holdings at a price determined by the Board, considering prevailing market conditions.

Interim Chairman of the Board, Siep Hiemstra, highlighted that the move aligns with the company’s commitment to bolstering its financial position, returning to profitability, and creating value for shareholders. The intended capital infusion aims to settle outstanding FX payables and a portion of local bank facilities, thereby mitigating currency devaluation risks, foreign exchange losses, and reducing interest burdens.

Hiemstra emphasized the support of majority shareholders, Heineken, in backing the recapitalization exercise by indicating readiness to subscribe to the allotted shares.

Speaking at the meeting, shareholders hailed the recapitalization as a strategic step forward, expecting significant improvements in the company’s business growth and performance. Mr. Boniface Okezie, National Coordinator of the Progressive Shareholders Association of Nigeria, commended the company’s leadership for its resilience and foresight.

Managing Director/CEO, Mr. Hans Essaadi, expressed gratitude to shareholders for their backing, reaffirming the company’s commitment to delivering long-term growth despite prevailing economic challenges. He outlined strategies focusing on cost management, operational optimization, leveraging brand strength, innovations, and effective market penetration.

Despite facing higher input costs and one-off reorganization expenses, Nigerian Breweries reported a 9% revenue increase in the 2023 financial year, with operating profit declining by 15% to N45 billion from N53 billion in 2022.

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