Nigerian Breweries Plc has approved the option of scrip shares for shareholders instead of cash payment of dividend. Hence, shareholders who have, prior to the date of payment and as at April 12, 2022, opted to be paid with New Ordinary Shares, will be paid accordingly.
This was approved at the 76th Annual General Meeting of Nigerian Breweries Plc held on April 22, 2022.
The resolution passed was proposed by the Directors to allow for shareholders who would rather receive additional shares than cash payments as dividends. Shareholders who opt for the shares for cash option would automatically increase the number of shares they hold in the company without incurring capital market fees and commission costs.
For the company, this option would mean that the cash which would have been paid as dividends, will be retained for working capital purposes. In addition, it would lead to the reduction of the company’s interest costs, enhancing its profitability.
What you should know
- The resolution passed at the 76th AGM meeting states, “That shareholders entitled to receive cash dividends in respect of the financial year ended 31st December 2021, be offered a right of election to receive ordinary shares in the company instead of cash dividends, and that such New Ordinary Shares be credited as fully paid, which, when issued, shall rank Pari Passau in all respects with the company’s existing ordinary shares”.
- That the election to receive ordinary shares instead of cash dividends should have been exercised on or before the 12th of April, 2022;
- The New Ordinary Shares to be received by shareholders shall be determined by their cash dividend entitlements divided by a Reference Share Price, which Reference Share Price shall be the ten (10) day average (starting on the 10th of March, 2021) of the Company’s closing share price on the floor of The Nigerian Stock Exchange.
- On March 25, 2022, the company sent out a share election form to shareholders whose preferred mode of payment was Shares for Cash. The form was to be submitted on or before April 12, 2022.