Guinness Nigeria Plc has secured the approval of Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) to raise N39,700,688,598 by way of rights issue to existing shareholders on the basis of five new shares for every 11 held.
The fund is expected to support the Company in executing its strategy in the context of ongoing external economic challenges.
According to Guinness Nigeria, the issue price represents a discount of 15 per cent to the Company’s closing share price on 14 March 2017, “being the last day prior to the announcement of the proposed Rights Issue by The Nigerian Stock Exchange”.
Managing Director of Guinness Nigeria Plc, Peter Ndegwa, said: “This 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 finance costs, optimize our balance sheet and improve the company’s financial flexibility.”
Chairman, Guinness Nigeria Plc, Babatunde Savage, explained 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 offer this Rights Issue. We are grateful for the support that we have received from our shareholders and other stakeholders up to this point.”
Stanbic IBTC Capital Limited is acting for Guinness Nigeria Plc as Issuing House for the Rights Issue. Full terms of the Rights Issue will be set out in a Rights Circular to be mailed directly to shareholders of the Company, which contains a Provisional Allotment Letter and the Participation Form.
The Company urged investors to read the Rights Circular and where in doubt, consult their Stockbroker, Fund/Portfolio Manager, Accountant, Banker, Solicitor, or any other professional adviser for guidance.
