Guinness Nigeria’s shareholders meet on N40b rights issue

Shareholders of Guinness Nigeria Plc will today meet to discuss plan by the company to raise N40 billion in new equity funds.

At the extra-ordinary general meeting today (Tuesday) in Lagos, shareholders are expected to approve the board of directors’ plan to undertake a rights issue of some N40 billion.

The company had announced at the end of 2016 its intention to offer a rights issue as part of plans to optimize its balance sheet and improve its financial flexibility.

Rights issue is usually offered to existing shareholders at considerable discount to the fair value of the shares. The shares will be allotted to shareholders on the basis of existing shareholdings.

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Guinness Nigeria, a subsidiary of Diageo Plc, was established in 1960 and shareholders base of over 70, 000 local and international shareholders.

Guinness Nigeria last year became the first total beverage company when it acquired rights to distribute international premium spirits like Johnnie Walker and Baileys in Nigeria in January 2016 and later commissioned a spirits line for locally manufactured spirits at its Benin plant in November.

This week, the company is also expected to release its first half results for the 6-month period ended 30 December 2016.

 

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