Nigerian Breweries to raise N600bn via rights issue to tackle debt burden from losses

Nigerian Breweries Plc has unveiled plans to raise up to N600 billion through a rights issue to address the debt challenges posed by the Naira devaluation and high borrowing costs.

The Company Secretary, Uaboi Agbebaku, made this known in a notification sent to the Nigerian Exchange Ltd. (NGX) in Lagos recently.

Agbebaku stated that the aim was to strengthen its balance sheet and reduce debt burden highlighted by a net loss of N106 billion in 2023.

He noted that the decision was reached at a specially convened meeting of the Board of Directors of the company held on Tuesday.

READ ALSO:Nigerian Breweries in need of N25 billion, seeks new investors

He explained that the Board resolved to recommend this fall-out to shareholders at the next annual general meeting, scheduled for 26 April.

According to him, proceeds from the rights issue would help to reduce the huge debt burden arising, thereby leading to a healthier balance sheet.

Mr Agbebaku noted that coupled with ongoing cost savings and other operational efforts, the board is optimistic about steering the company back to the path of sustainable profitability soon.

“The board also resolved to recommend to shareholders at the AGM, the increase in the company’s share capital to take care of the new shares to be allotted under the rights issue,” he said.

By: Babajide Okeowo

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