The shareholders’ associations in Nigeria have declared their support for plans by Nigerian Breweries Plc to raise N600 billion through Rights Issues.
This followed the foreign exchange exposures that made the company lose N106 billion in the 2023 financial year.
The Nigerian Breweries had announced at its pre-annual General Meeting (AGM) briefing held on April 10 that the funds, when raised, would be used for payments of all overdue foreign exchange debts, eliminate forex exposure, and strengthen its balance sheet and liquidity position.
In separate statements, Boniface Okezie, National Coordinator, the Progressive Shareholders Association of Nigeria (PSAN), Bisi Bakare, National Coordinator, Pragmatic Shareholders Association (PSAN), and Moses Igbrude, National Coordinator, the Independent Shareholders Association of Nigeria (ISAN), declared their support for the Rights Issue, saying it would help steer the company back to profitability.
On his part, 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.
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He said: “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.”
He urged Nigerian shareholders to embrace the offer, saying the strategic plans being put in place by the company would lead to a quick return to profitability.
“Nigerian shareholders should take up the offer because Nigerian Breweries will bounce back, I have seen the recovery plans being put in place by the company and I am convinced they will lead to recovery from the loss position of 2023. In addition to those plans, the company has good products and a vast huge market share that will help them recover even more quickly than most people expect,” Okezie added.
Bakare declared her association’s support for the Rights issue and expressed optimism that the offer would be over-subscribed at the end of the day.
By: Babajide Okeowo
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