International Breweries secures shareholder loan approval to offset debt

NIGERIA – International Breweries Plc (IBPLC), a prominent beverage company and a subsidiary of ABInBev, has reaffirmed its dedication to long-term investment in Nigeria following the successful completion of its Extraordinary General Meeting (EGM) held recently in Lagos. 

The company’s commitment to revitalizing its operations and returning to profitability was underscored by the overwhelming support received from shareholders for its strategic initiatives.  

In February, shareholders endorsed a rights issue plan aimed at bolstering the company’s financial position. Subsequently, during a second EGM in April, shareholders overwhelmingly approved a shareholder loan to further support IBPLC’s turnaround efforts. 

At the heart of these initiatives is IBPLC’s plan to utilize the generated funds from the rights issue and shareholder loan to fully settle its USD loan, which was utilized for the construction of its plant in Ogun State.  

The company cited challenges such as sourcing US dollars, forex volatility, rising operational costs, and macroeconomic impacts as factors that hindered loan repayment in previous years. 

Speaking at the EGM, Igwe Nnaemeka Achebe, Chairman of the Board of Directors, highlighted ABInBev’s unwavering support for IBPLC’s endeavors.  

He emphasized the significance of the shareholder loan in injecting equity to recapitalize the business, thereby paving the way for profitability and enhancing shareholder value. 

“We project that the repayment of the loan will inject the desired equity to recapitalize the business, thereby setting it on the path to profitability, in addition to driving IBPLC’s value which will ultimately translate to better returns for our shareholders,” Achebe stated. 

Moreover, Achebe underscored ABInBev’s confidence in Nigeria’s potential by reaffirming the parent company’s support for the rights issue. He highlighted ABInBev’s commitment to IBPLC’s success, sustainability, and continuous strategic investments in Nigeria. 

“Anheuser-Busch InBev (ABInBev) fully supports this process and has committed to taking up their rights in full. This decision, including threading the path of the shareholder loan, demonstrates ABInBev’s commitment to the success and sustainability of IBPLC, including its dedication to long-term presence and continuous strategic investments in Nigeria,” Achebe affirmed. 

Responsible Beverage Service 

The news comes on the heels of the recently concluded one-year Responsible Beverage Service (RBS) programme by IBPLC. 

The pioneering initiative, aimed at promoting responsible drinking and discouraging harmful use of alcohol, was successfully concluded leaving a positive impact on communities and members. 

The RBS initiative was conceived by the AB InBev Foundation, the programme’s sponsor. It delivered targeted training to bar owners and managers through comprehensive sessions, simultaneously breathing new life into local communities via initiatives like clean-up exercises.  

The intervention programme aimed to mitigate alcohol-related harms attributed to problems such as drunk driving, underage drinking, binge drinking, and alcohol consumption by pregnant women. 

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