Home Brands N40B Rights Issue: Guinness Nigeria PLC receives approval
Brands - January 25, 2017

N40B Rights Issue: Guinness Nigeria PLC receives approval

L-R Vice-Chairman and President, Diageo Africa, Mr John O’Keffe, Chairman, Mr. Babatunde Savage, Managing Director/CEO, Mr. Peter Ndegwa and Non Executive Director, Mr. Bismark Rewane at the end of the Guinness Nigeria PLC EGM which held on Tuesday in Lagos.

Brewery giant, Guinness Nigeria Plc, on Tuesday received the approval of its shareholders for a proposed N40 billion Rights Issue.

The approval was given at the company’s Extra-Ordinary General Meeting (EGM), held in Lagos and was attended by local shareholders and representatives of international shareholders.

The company said in a statement that, in addition to the Rights Issue, all other resolutions were passed at the event.

Speaking on the meeting, Babatunde Savage, Chairman, Guinness Nigeria Plc, said: “Guinness Nigeria has been in this country for over 60 years and in that time, we have continued to add significant economic and social value to Nigeria and Nigerians. We believe this Rights Issue will positively impact on the financial performance of Guinness Nigeria and help mitigate the impact of increasing finance costs in what continues to be a challenging economic environment in Nigeria. I call on all my fellow shareholders to take this opportunity and support the company’s objectives.”

Guinness Nigeria Plc which is a subsidiary of Diageo plc, had announced at the end of 2016, its intention to offer a Rights Issue as part of plans to optimise its balance sheet and improve its financial flexibility. With the approval of its shareholders, the company is now in a position to raise up to N40bn as fresh cash injection into the business operations.

Also speaking at the meeting, Peter Ndegwa, Managing Director/CEO, Guinness Nigeria Plc said that the company has good fundamentals and potentials for the future. “Guinness Nigeria is a company with excellent fundamentals and we have the right strategy and the right people to grow our business for the future. This Rights Issue in combination with our productivity and cost optimization drive will help provide the fuel to continue to build this business for Nigeria and Nigerians.”

 

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