• Thursday, June 13, 2024
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IBPLC secures shareholders’ approval to undertake rights issue, loan

IBPLC secures shareholders’ approval to undertake rights issue, loan

International Breweries Plc (IBPLC), a member of ABInBev, has obtained shareholders’ approval to embark on a proposed rights issue to return the company to profitability.

During a recent Extraordinary General Meeting of the company, IBPLC also secured the shareholders’ support to go for a shareholder loan.

According to the firm, the funds generated from the rights issue and shareholder loan would be earmarked for the full settlement of its USD loan used to build its plant in Ogun State, the largest in sub-Saharan Africa.

The company said it has been finding it difficult to pay the loan over the years due to the constraints of sourcing US Dollars, other related forex volatility challenges, the surge in operational costs, and other macroeconomic impacts.

Nnaemeka Achebe, chairman of the Board of Directors, said AB InBev has given full support to the proposed shareholder’s loan.

“We project that the repayment of the loan will inject the desired equity to recapitalise the business, thereby setting it on the path to profitability. It will also help IBPLC to achieve better returns for their shareholders.

The Chairman said IBPLC’s parent company’s support of the rights issue is an indication of its confidence in Nigeria.

“Anheuser-Busch InBev (ABInBev) fully supports this process and has committed to taking up their rights in full. This decision, including threading the path of the shareholder loan, demonstrates ABInBev’s commitment to success and sustainability including its dedication to long-term presence and continuous strategic investments in Nigeria,” he said.

At the meeting, shareholders expressed hope that the rights issue would enable them to buy more shares and that the full payment of the loan in May would drive the company’s equity upward.

Boniface Okezie, national chairman of the Progressive Shareholder Association of Nigeria said shareholders are eagerly waiting for the commencement to take up the right issue.

“After paying the loan, we know the company will start generating profit and start paying dividends to shareholders. We want to thank International Breweries and ABInBev for keeping faith with Nigeria despite the economic challenges,” he said.

Okezie appealed to the minority shareholders to endeavour to participate in the rights issue.

Moses Ibrude, national coordinator of the Independent Shareholders Association of Nigeria and chairman of the Audit Committee, said the decision will enable shareholders to help drive more value for the company.

“IBPLC borrowed to build a world-class brewery and the profit the company makes has been used in servicing this debt. The board is taking the right step and we all support this resolution,” Ibrude said.

David Tomlinson, finance director of International Breweries Plc, acknowledged the company’s robust market share growth across Nigeria while encouraging shareholders to take up the rights issue offer.

“Our company has been recording remarkable success with our quality product offerings and market share gains. This right issue offer, including the shareholder loan, will make a meaningful impact on the profitability of our organisation,” he said.

On his part, Carlos Coutino, managing director of International Breweries Plc, said IBPLC remains resolute in delivering worth and innovation as well as contributing positively to host communities.

“Our commitment to transparency, accountability, and sustainable growth is unwavering. We believe in fostering a culture of mutual trust and collaboration, and your role as shareholders is important to this vision,” he said.