Nigerian Breweries Plc, headquartered in Lagos, has announced plans to raise up to 600 billion Nigerian naira ($450 million) through a rights issue to tackle challenges posed by Naira devaluation and high borrowing costs. The decision was made at a Board of Directors meeting, aiming to strengthen the balance sheet amidst a net loss of $450 million in 2023. The rights issue will be recommended to shareholders at the upcoming annual general meeting, alongside proposals for an increase in share capital to accommodate new shares.
Despite significant mitigating actions, the company faces challenges such as Naira devaluation, limited access to hard currency, and high interest rates, pressuring net profit. The rights issue is crucial for Nigerian Breweries to achieve its strategic objectives and return to profitability. Additionally, it offers shareholders an opportunity to increase holdings, aligning with the company's commitment to sustaining value for stakeholders and positively impacting host communities and consumers.