In a bid to boost its operations and achieve greater returns for its shareholders, Champion Breweries Plc is finalising plans to raise a fresh capital, the company has said.
To raise the funds approved by its shareholders at its 38th Annual General Meeting which was held in Lagos, the company says it will create additional three billion ordinary shares of 50 kobo each.
This, it noted, would enable the firm to “rank pari-passu in all respects with the existing ordinary shares in the capital of the company, subject to regulatory approvals.”
The statement said the company also got the approval of its shareholders to increase its authorised share capital to N4.5bn from N3bn.
The Chairman, Champion Breweries, Chief Senas Ukpana, was quoted as saying that with the commitment and cooperation of the company’s core and major investors, the board had been re-assured that the recapitalisation and refinancing programme would be implemented and successfully turn the company’s fortunes around.
Ukpana also said that the board was making efforts to solve the issues thrown up by the planned debt refinancing, the improvement of various operating efficiency parameters as well as improvement on the utilisation of installed capacity of the brewery.
This, he explained, would positively impact the company and enable it to fulfil its pledge of better returns to the shareholders.
According to the statement, in giving their approval to the proposal to increase the authorised share capital, the shareholders commended the board for taking steps to keep the company profitable in a sustainable way despite the numerous challenges it faced as result of the tough business environment.
They assured the management of their support, while expressing the hope that the efforts to reposition the company for improved returns would end up being successful.
The chairman promised the shareholders that the turn-around revolution started by the management would engender positive results within a short period.
Ukpana, who thanked the shareholders for their confidence and support, assured them that the reforms being executed by the company would ultimately boost its bottom line within a short period.
Already, he said the company’s turnover was on the rise as it recorded N2.3bn in 2013 as against the turnover of N1.8bn it posted in the previous year.