The Shareholders of Guinness Nigeria Plc have approved the board’s resolution to raise about N40 billion in rights issue. The company issued a press release confirming this approval on Tuesday.
Here is the press release the company issued;
Tuesday, 24th January 2017, Lagos, Nigeria – Guinness Nigeria Plc, held its Extra-Ordinary General Meeting (EGM) on Tuesday, 24th January 2017 and received the approval of its shareholders for a proposed Rights Issue. The meeting which took place in Lagos was well attended by local shareholders and representatives of international shareholders. In addition to the Rights Issue, all other company resolutions were passed at the event.
Speaking on the meeting, Babatunde Savage, Chairman, Guinness Nigeria Plc, said: “Guinness Nigeria has been in this country for over 60 years and, in that time, we have continued to add significant economic and social value to Nigeria and Nigerians. We believe this Rights Issue will positively impact on the financial performance of Guinness Nigeria and help mitigate the impact of increasing finance costs in what continues to be a challenging economic environment in Nigeria. I call on all my fellow shareholders to take this opportunity and support the company’s objectives.”
Guinness Nigeria Plc which is a subsidiary of Diageo plc, had announced at the end of 2016, its intention to offer a Rights Issue as part of plans to optimise its balance sheet and improve its financial flexibility. With the approval of its shareholders, the company is now in a position to raise up to N40bn as fresh cash injection into the business operations.
Also speaking at the meeting, Peter Ndegwa, Managing Director/CEO, Guinness Nigeria Plc said that the company has good fundamentals and potentials for the future. “Guinness Nigeria is a company with excellent fundamentals and we have the right strategy and the right people to grow our business for the future. This Rights Issue in combination with our productivity and cost optimization drive will help provide the fuel to continue to build this business for Nigeria and Nigerians.”
Guinness Nigeria Plc last year became the first total beverage company in Nigeria when it acquired rights to distribute international premium spirits like Johnnie Walker and Baileys in Nigeria in January 2016 and later commissioned a spirits line for locally manufactured spirits at its Benin plant in November. This week, the company is also expected to release its first half results for the 6-month period ended 31st December 2016.