Nigerian Breweries Plans N600bn Capital Raise via Rights Issue

Nigerian Breweries, NB Plc, has finalized plans to raise capital through a rights issue. In a statement to the Nigerian Exchange Limited (NGX), the company announced its intention to recommend the raising of up to N600 billion at its next Annual General Meeting (AGM), subject to regulatory approvals.

The statement, signed by Uaboi G. Agbebaku, Company Secretary, NB, highlighted the necessity of the capital raise to mitigate the negative effects of naira devaluation and high borrowing costs on the company’s balance sheet. The proceeds from the rights issue are expected to alleviate the debt burden, leading to a healthier financial position. The Board is confident that, combined with cost-saving measures and operational efficiencies, this move will drive sustainable profitability in the future.

Additionally, the Board proposed an increase in the company’s share capital to accommodate the new shares to be issued under the rights issue. Shareholders will vote on these proposals at the AGM scheduled for April 26, 2024.


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