Nigerian Breweries Extends Interval For Rights Concern Acceptance After SEC Approval

Nigerian Breweries Plc has prolonged the acceptance interval for its ongoing Rights Concern from the unique time limit of October 11, 2024, to October 18, 2024.

The extension was permitted by the Securities and Alternate Fee (SEC) and goals to accommodate the traditional working days disrupted by public holidays through the preliminary subscription interval, which started on September 2, 2024.

This announcement was made in an official assertion signed by the corporate’s Secretary, Uaboi Agbebaku, seen .

The assertion emphasised that the extension is meant to supply shareholders with satisfactory time to take part within the Rights Concern.

“Nigerian Breweries Plc is happy to inform its esteemed shareholders and the Nigerian Alternate Restricted (NGX) that the Acceptance Interval for its Rights Concern, initially scheduled to shut on eleventh October 2024, has been prolonged to 18th October 2024, following approval from the Securities and Alternate Fee.

“The extension permits us to accommodate the traditional working days impacted by public holidays noticed through the preliminary Acceptance Interval,” the assertion learn.

The corporate additionally highlighted that in this prolonged interval, restrictions on insider buying and selling will stay in impact. Insiders will solely be allowed to take part within the Rights Concern, in keeping with the non-dealing interval guidelines set by NGX in regards to the firm’s unaudited monetary statements for the interval ended September 30, 2024.

Nigerian Breweries Plc is searching for to lift N599.1bn by the Rights Concern to handle its monetary obligations.

The providing consists of twenty-two.6bn peculiar shares at a value of N26.50 per share, with shareholders entitled to purchase 11 new shares for each 5 they at the moment maintain.

Throughout a latest “Information Behind the Rights Concern” presentation in Lagos, Agbebaku defined that the proceeds will likely be used to settle the corporate’s vital monetary obligations, together with N328bn in international alternate (FX) debt and N263bn in native repayments.

Agbebaku said that clearing these obligations is essential to eliminating FX losses from the corporate’s steadiness sheet and lowering its curiosity burden on native debt, notably in gentle of Nigeria’s 26 per cent Financial Coverage Charge (MPR).

“Our FX losses have been appreciable, and settling these obligations will stabilize our revenue and loss accounts. Moreover, lowering native financial institution money owed will finally decrease our curiosity burden, which has posed a considerable monetary pressure,” Agbebaku stated.

Nigerian Breweries has confronted vital monetary challenges in 2024, reporting a loss after tax of N85.3bn within the first half of the 12 months. The loss was pushed by rising inflation, international alternate prices, operational bills, and broader financial pressures.