Following shareholder approval received in January, Guinness Nigeria Plc has received clearance of the issue documents from the Securities and Exchange Commission (SEC) and approvals from the Nigerian Stock Exchange (NSE) to list the new Guinness Nigeria shares on Th e NSE. Th e funds raised will support the company in executing its strategy in the context of ongoing external economic challenges.
Th e company plans to raise N39,700,688,598 by way of rights to existing shareholders, on the basis of fi ve new shares for every 11 shares held by shareholders, whose names appeared in the register of members of the Company as at 15 March 2017 at an issue price of N58 per share. Th e issue price represents a discount of 15% per cent to the Company’s closing share price on March 14, being the last day prior to the announcement of the proposed Rights Issue by Th e Nigerian Stock Exchange.
Managing Director of Guinness Nigeria Plc, Peter Ndegwa, said: “Th is Rights Issue will allow the Company to deliver on its strategic objectives and give all our shareholders a unique opportunity to increase the number of shares they hold. Our expectation is that funds raised will help mitigate the impact of increasing fi nance costs, optimize our balance sheet and improve the company’s fi nancial fl exibility.” Chairman, Guinness Nigeria Plc, Babatunde Savage, stated that the process is part of the company’s long term plans to continue to invest in its business in Nigeria.
“We have been here in Nigeria for 67 years and, while it has been challenging in recent times for many Nigerian businesses, we remain committed to this market as evidenced by our decision to off er this Rights Issue. We are grateful for the support that we have received from our shareholders and other stakeholders up to this point.” Last year, Guinness Nigeria Plc became the fi rst total beverage alcohol company in Nigeria by acquiring the rights to distribute international premium spirits like Johnnie Walker whisky and Baileys liqueur in Nigeria and later commissioning a N4.7 billion spirits line for locally manufactured spirits at its Benin plant.
