NIGERIA – International Breweries Plc (IB Plc), a subsidiary of global brewing giant AB InBev, has announced that non-shareholders can now participate in its ongoing rights issue.
According to a statement from the company, non-shareholders can acquire traded rights on the floor of the Nigerian Exchange through stockbrokers.
Last month, IB Plc launched a rights issue of 161,172,395,100 shares, offering shareholders six new ordinary shares for every one existing share held, at an issue price of N3.65 each.
This move, aimed at strengthening shareholder equity and driving future profitability, commenced on May 21, 2024, and is set to close on June 10, 2024.
The net proceeds from the rights issue will be utilized to settle IB Plc’s outstanding US dollar-denominated loan and provide working capital support.
David Tomlinson, the Finance Director of International Breweries, emphasized the company’s commitment to creating sustainable value for its shareholders.
“We are committed to creating sustainable value for our shareholders while fortifying our position in the Nigerian beverage industry. Together, we will continue to brew success, deliver long-term value for our shareholders, and create a future with more cheers,” Tomlinson stated.
The tradability of the rights on the Nigerian Exchange ensures liquidity and accessibility for shareholders throughout the offer period.
This decision follows the approval received from shareholders during an Extraordinary General Meeting (EGM) in February 2024. Shareholders viewed the rights issue as an opportunity to acquire more shares and support the company’s debt repayment efforts, which they believe will contribute to future growth.
Despite a challenging economic landscape, IB Plc has remained resilient, continuously implementing measures to transform its operations into a profitable enterprise admired by its shareholders.
Recently, IB Plc announced an increase in the prices of its beer and other stock-keeping units (SKUs) due to escalating operational costs. This price adjustment, effective June 1, 2024, is a response to inflationary pressures impacting the business.
In a memo addressed to its business partners, Olaleye Abimbola, the company’s head of sales, cited inflationary pressures as the primary reason for the price adjustments. The memo outlined the necessity for the new pricing structure to adapt to current market realities.
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