Shareholder Urges Nigerians to Support Nigerian Breweries’ Rights Issue
Shareholders associations in Nigeria have given their nod to plans by Nigerian Breweries Plc to raise N600 billion through Rights Issues on the back of foreign exchange exposures that precipitated a loss of N106 billion for the 2023 financial year.
The company had announced at its pre-AGM briefing held on April 10, 2024, that the funds, when raised, would be used for payments of all overdue foreign exchange debts, eliminate forex exposure, and strengthen the company’s balance sheet and liquidity position.
In separate statements, National Coordinator, Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie, National Coordinator, Pragmatic Shareholders Association (PSAN), Bisi Bakare, and National Coordinator, Independent Shareholders Association Of Nigeria (ISAN), Moses Igbrude, gave their backing to the Rights Issue, saying it will help steer the company back to profitability.
In his own statement, Okezie regretted the headwinds that triggered the erosion of shareholders’ funds but expressed satisfaction with plans by the nation’s biggest brewer to return to profitability.
“The Rights Issue is the way to go. Nigerian breweries need to rebuild their shareholders’ funds that were eroded by FX losses. The N600 billion proposed for Right Issues is going to fly as long as the foreign partner commits to take up their right when open,” Okezie said.
In her statement, Mrs Bakare, of Pragmatic Shareholders Association, expressed her association’s support for the Rights issue, expressing the optimism that the offer will be over-subscribed at the end of the day.
Also in his statement, Moses Igbrude, ISAN Coordinator, said Nigerian shareholders and investors are happy about the Rights Issue, being as he said, the most creative way the company could address the balance sheet challenges that lead to the poor returns during the 2023 business year.
Igbrude said Nigerian Breweries needs the capital injection as a sure way to mitigate against future losses.
