Shareholders of International Breweries have approved the company’s quest to raise additional equity capital through a rights issue to existing shareholders.
The approval was part of a special resolution at the Extraordinary General Meeting of the Company held in Lagos.
According to the company’s notice to the Nigerian Exchange Limited (NGX) seen by Nairametrics, this authorization encompasses the determination of various terms and conditions, including, but not limited to, the amount of the Rights Issue, price, rights ratio, and provisional allotment of shares, which will be decided by the Board of Directors.
Furthermore, any shares not subscribed to by existing shareholders within the stipulated period of the Rights Issue may be made available to shareholders who have expressed interest in purchasing additional shares. This offering will be subject to terms and conditions established by the Directors.
The shareholders also endorsed that the share capital of the Company be increased to such an amount as shall be determined by the Directors, as being required to undertake the Rights Issue
The Company’s share capital
They resolved that the nominal value of all the existing ordinary shares in the Company’s share capital be sub-divided from fifty Kobo (N0.50) each to two Kobo (N0.02) each and all future ordinary shares in the Company’s share capital, including all new ordinary shares that are to be created pursuant to the increase of the Company’s share capital, shall have a nominal value of two Kobo (N0.02) each.
The shareholders further approved that the Memorandum of Association of the Company be amended by deleting the provisions of Clause 6 and substituting it with the following:
- “The Share Capital of the Company is N537,241,317 (Five Hundred and Thirty-Seven Million, Two Hundred and Forty-One Thousand, Three Hundred and Seventeen Naira) divided into 26,862,065,850 (Twenty-Six Billion, Eight Hundred and Sixty-Two Million, Sixty-Five Thousand, Eight Hundred and Fifty) ordinary shares of N0.02 (Two Kobo) each.” and such other amendments be made to the Memorandum of Association of the Company as may be required in consequence of the increase in the share capital for purposes of executing the Rights Issue”.
What you should know
Nairametrics reported that International Breweries Plc has posted its unaudited results for 2023, with the company recording a pre-tax loss of N87.64 billion, marking a 226% decline from the N26.84 billion loss before tax posted in FY 2022.
The company recorded a 21% increase in turnover to N264.28 billion, from N218.65 billion in 2022. In Q4 2023, the company’s revenue of N80.50 billion marked a 38% year-on-year increase from the N52.22 billion posted in Q4 2022.
The company was a major victim of the Naira devaluation in 2023, as it recorded a net foreign exchange loss of N72.47 billion in 2023, representing a 437.6% decline from the N13.47 billion net FX loss recorded in 2022.
The interest expense on the company’s borrowings increased to N24.75 billion in FY 2023, representing a 247% increase from the N7.14 billion interest expense on borrowings in FY 2022.
