Nigerian Breweries swaps 67.8m shares in N20.6bn dividend deal

Nigerian Breweries Plc on Wednesday listed 67.8 million ordinary shares of 50 kobo each. The supplementary shares were due to the scrip dividend scheme offered by the company to eligible shareholders who elected to receive new ordinary shares in lieu of cash dividends.

The additional shares of arose as a result of the scrip dividend scheme offered to eligible shareholders of the second most capitalised quoted company who elected to receive new ordinary shares in lieu of cash dividends with respect to the N2.58 final dividend declared for the year ended December 31, 2017.

With the supplementary listing of 67.80 million ordinary shares, the total issued and fully paid up shares of Nigerian Breweries increased from 7.929 billion to 7.997 billion ordinary shares of 50 kobo each.

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Nigerian Breweries had distributed N28.4 billion to shareholders as cash dividend for the 2016 business. The gross dividend however represented 25 per cent reduction in cash dividend, following the same contraction in the net profit of the brewing giant. Breakdown of the dividend recommendation showed a total dividend per share of N3.58, representing 25.4 per cent reduction on N4.80 per share paid for the 2015 business year.

A final dividend of N20.46 billion was distributed to shareholders on the basis of N2.58 per share. The company had earlier paid interim dividend of N7.9 billion to shareholders, equivalent to N1 per share.

The board of Nigerian Breweries had then recommended an option for qualifying shareholders to receive new ordinary shares in the company instead of the cash final dividend, on terms and conditions as the board may determine based on prevailing market conditions.

Shareholders subsequently voted for the cash-for-share dividend option at the company’s annual general meeting in May 2017.

 

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