Nigerian Breweries(NB) Plc has secured regulatory approval by the Securities and Exchange Commission (SEC) to extend its ongoing N599.1 billion rights issue.
The extension follows after the acceptance period for the right issue closed on October 11, 2024.
In a notice of extension of the acceptance period conveyed by Nigerian Breweries and signed by its legal director/company secretary, Uaboi Agbebaku, stated that the acceptance period for its rights issue which opened on September 2, 2024, and scheduled to close on October 11, 2024, has been extended to October 18, 2024, following the approval of the Securities and Exchange Commission(SEC).
NB is offering its shareholders 22.61 billion ordinary shares at 50 kobo each, priced at N26.50 per share. The offer is open to all existing shareholders, giving them the opportunity to increase their shares in the company by 11 new shares for every five held at the close of business on July 12, 2024.
Agbebaku noted that the acceptance period was extended to accommodate the normal working day activities disrupted by the public holidays observed during the initially scheduled acceptance period.
According to him, the extension was meant to provide shareholders with ample opportunity and time to subscribe to their rights.
He further stated that, during the extension period, insiders’ dealings on the company’s shares will be strictly limited to participation in the rights issue as earlier approved by the NGX in respect of the non-dealing period with regard to the company’s unaudited financial statements for the period ended September 30, 2024.
Recently, at the ‘Facts Behind the Rights Issue’ presentation by the company at the Nigerian Exchange Limited, the managing director of Nigerian Breweries, Hans Essaadi, acknowledged the difficult environment but expressed optimism about the company’s future.
“We have completely future-proofed our business. Some measures taken by the new administration are painful, but we believe that in the mid-to-long term, we will start to see positive outcomes. As inflation, interest rates, and other economic indicators improve, our results will follow suit,” he enthused.
Essaadi also revealed that Heineken, the brewer’s parent company, which holds over 67 per cent of Nigerian Breweries’ equity, had suspended interest on its foreign loans to enable the company to meet its financial obligations.
Despite the economic pressures, Essaadi reiterated the company’s long-term commitment to the Nigerian market. “We have been in this market for nearly 80 years and have weathered many storms. This rights issue is essential for stabilising our balance sheet and ensuring long-term growth,” he added.
