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Bobby Zika
International Breweries Plc, a subsidiary of ABInBev, has announced it intends to raise additional N165 billion capital for its business operations through Rights share issue
The company, according to a statement released by its Secretary and Legal Counsel, Muyiwa Ayojimi, has therefore opened an offer for 18,266,206,614 units of ordinary shares of 50 kobo each at N9.00 per share.
The offer, which opened on Thursday, December 5, 2019, is expected to close Tuesday, December 24, 2019.
According to the statement, for every 8 shares held by shareholders whose names appeared in the register of members of the company as at November 6, 2019, an offer of 17 ordinary shares is made.
The statement noted that the offer, which has been well received and subscribed to, is still open and available to existing shareholders to take advantage of, before it closes on Tuesday.
Through the Rights issue, the company’s capital structure is expected to be remarkably changed as long-term debt is replaced with equity, thereby easing the burden of interest payments, increasing management’s flexibility as well as removing volatility in earnings.
This offer, which interestingly is currently the largest Rights issue in Nigeria, is to have its full impact reflected in 2020 while presenting a positive outlook for dividends for shareholders in 2021.
