Guinness Nigeria N39.7bn capital raising gets on the way

Guinness Nigeria Plc, the Nigeria arm of the Irish stout brewer, has got its capital raising programme on the way with the opening of applications for its rights issue.

The company hopes to raise N39.7 billion from existing shareholders in a rights issue many analysts believe would be over-subscribed. The new equity funds raising will allow shareholders raise their current holdings, but it would not change the shareholding structure, Businessamlive learnt.

Expected to close August 30, 2017, the rights issue is being used by the company to offer 684.49 million ordinary shares of 50 kobo each at N58 per share to all existing shareholders who are expected to take up the offer on the basis of five new shares for every 11 already held as at the close of business on March 15, 2017.

Babatunde Savage, company chairman described the supplementary new issue as 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 offer this Rights Issue. We are grateful for the support that we have received from our shareholders and other stakeholders up to this point,” he said.

The shares are being offered at a discount of 12.25 percent (N58) to the existing shareholders on the company’s share price of N66.10 on Monday when it opened.

Shareholders who are not able to take up their rights have been encouraged to trade their renounced shares through the Stock Exchange automated trading system.