Nigerian Breweries Plc has announced plans to reduce its foreign exchange (forex) losses and local debt burden through a N599.1 billion rights issue.
This was revealed by the company secretary, Uaboi Agbebaku, during a presentation at the Nigerian Exchange Limited.
The rights issue offers 22.6 billion ordinary shares at N26.50 per share, giving shareholders the opportunity to purchase 11 new shares for every five they currently hold.
The proceeds will help the company settle N328 billion in forex debts and N263 billion in local debts, easing financial strain from high interest rates.
The brewer suffered a N153 billion forex loss in 2023 due to naira devaluation.
Shareholders raised concerns about the company’s financial health and called for more investment in research and development to reduce dependence on imported raw materials.
Nigerian Breweries’ Managing Director, Hans Essaadi, expressed confidence in the company’s long-term growth, despite challenging economic conditions, and emphasized that the rights issue is crucial for stabilizing its balance sheet.
Heineken, which owns over 67% of Nigerian Breweries, has suspended interest on its foreign loans to assist the company in meeting its obligations.
Essaadi reiterated the company’s commitment to the Nigerian market, which it has operated in for nearly 80 years, and expressed optimism about future improvements as Nigeria’s economic situation stabilizes.