NIGERIA – The Nigerian Stock Exchange (NSE) has admitted a total of 6.3 billion ordinary shares of 50 kobo each belonging to Champion Breweries Plc to trade on the exchange.
The NSE said the listing followed the company’s recently concluded rights issue which closed on September 10th, 2014, thus increasing the issued quantity of the company’s share to 7.2 billion.
Under the rights issue, the company offered the shares, which have now been admitted for trading, to investors in a bid to raise N11.65 billion.
The shares were offered to existing shareholders in the ratio of seven new ordinary shares for every ordinary share held as of the close of business on Wednesday, May 7, 2014 at N1.85 per share.
Champions Breweries had announced plans to recapitalise its operations earlier in the year.
In July this year, the company announced that it had concluded arrangements to raise N11.65 billion via rights issue, having received the approval of its shareholders to raise up to N13.7 billion additional capital at its annual general Meeting, which was held on May 16, 2014.
“The net proceeds of the issue will be used to repay the company’s existing debt and reduce the interest burden which will potentially enhance the company’s operations and reposition it for profitability and growth,” it said in a statement.
The statement had quoted the Chairman, Board of Directors, Champion Breweries, Chief Senas Ukpahah, as saying at the signing ceremony in Lagos that the rights issue, when concluded, would be key to transforming the company and ensuring its growth.
He said, “The successful outcome of the rights issue will signify a huge step towards the implementation of Champion Breweries’ turnaround programme which is crucial in reversing the fortunes of our company.”