Business News

International Breweries Begins N588.3bn Rights Issue

International Breweries

By Aduragbemi Omiyale

One of the beer makers in Nigeria, International Breweries Plc, has commenced its N1588.3 billion rights issue, Business Post reports.

The brewery giant intends to issue about 161,172,395,100 ordinary shares of 2 Kobo each at N3.65 per share, according to details of the exercise obtained by this newspaper.

​The rights issue of the company commenced on Tuesday, May 21, 2024, and will wrap up on Monday, Jun2 10, 2024.

The company is issuing six new ordinary shares for every one ordinary share held by shareholders at the close of business on Tuesday, May 2, 2024.

Recall that last month, shareholders of International Breweries approved the conversion of a $379.9 million loan from its majority shareholder, AB InBev Nigeria Holdings BV, to equity.

The majority investor secured the credit facility from Citibank Abu Dhabi and the firm had to convey an Extraordinary General Meeting (EGM) to approve the loan-to-equity conversion.

“That the convertible loan of $379.9 million from AB InBev Nigeria Holdings BV in respect of the repayment of the loan obtained by the company from Citibank Abu Dhabi is hereby accepted and approved in accordance with the terms and conditions presented by the management of the company.

“Subject to complying with applicable regulatory requirements, the directors are authorized to apply all sums due from the company to AB InBev Nigeria Holdings BV under the shareholders loan, towards payment for any shares subscribed for by AB InBev Nigeria Holdings BV in the company’s rights issue that has been approved by the shareholders of the company,” the shareholders authorised at the meeting.

The company has planned a Facts Behind the Rights Issue Presentation at the Nigerian Exchange (NGX) Limited on Thursday, May 23, 2024, to engage capital market stakeholders about the exercise.