Nigerian Breweries has announced the extension of its ongoing rights issue programme to October 18, following approval from the Securities and Exchange Commission (SEC). The rights issue was initially set to close on October 11.
According to the statement signed by the company secretary, the extension is intended to compensate for disruptions caused by recent public holidays, ensuring that shareholders have ample time to participate in the rights issue.
The company launched its N599.1 billion rights issue on September 2, offering 22.61 billion ordinary shares at N26.50 per share, utilising a ratio of 11 new shares for every five held as of July 12. According to Hans Essaadi, managing director of Nigerian Breweries Plc, the capital raising exercise became necessary due to the significant losses incurred by the company after the devaluation of the Naira.
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He noted, “The tough business landscape characterised by double-digit inflation rates, naira devaluation, FX challenges, and diminished consumer spend has taken its toll on many businesses, including ours,”
Although Nigerian Breweries’ revenue grew to N479.8 billion as of the first half (H1) of 2024, the group’s reported loss after tax hit N85.2 billion, a 79 percent growth from the N47.6 billion loss recorded in H1 2023.
A critical player in the rights issue is Heineken NV, the parent company of Nigerian Breweries Plc, which is expected to take up all of its rights in the programme, thus freeing NB Plc of a significant portion of its FX-denominated debts.
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