Int’l Breweries seeks shareholders’ consent to convert $379.9m debt to equity

International Breweries Plc will at an Extra-ordinary General Meeting (“EGM”) to take place on April 9, 2024 seek shareholders’ approval to convert an intercompany loan of $379.9 million to equity on April 9.

A debt-to-equity is a refinancing deal in which a debt holder gets an equity position in exchange for the cancellation of the debt.

Other resolutions hoped to be approved at the EGM include Signatory Authorisation that will authorize a Director and Company Secretary to sign and execute all documents necessary to give effect to the above resolutions, including without limitation to, complying with the directives of any regulatory authority.”

Shareholders would also be asked to consider, and if thought fit, approve authorisation of the directors to apply any convertible loan, shareholder loan or any other loan amount/facility due to any person from International Breweries as may be agreed between the person and the company towards payment for any shares subscribed for in the rights issue that has been approved by the shareholders.

READ ALSO:International Breweries records N21.28 billion loss in three months

This notice was announced in a Notice Of Extra-Ordinary General Meeting filed to the Nigerian Exchange Limited (NGX) on Monday by the company’ secretary Marian Reginald-Ukwuoma

The loan was granted by AB InBEV Nigeria Holdings, the majority shareholder of International Breweries.

AB InBEV Nigeria is a subsidiary of Anheuser-Busch InBev (AB InBev) — a multinational drink and brewing giant based in Leuven, Belgium.

The company said the board would request that “the loan of US$379.9 million granted to International Breweries Plc by AB InBEV Nigeria Holdings BV (‘the Shareholder Loan”) in respect of the repayment of the loan obtained by the Company (International Breweries) from Citibank Abu Dhabi be and is hereby approved in accordance with the terms and conditions presented by the Board of Directors “.

By Babajide Okeowo

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