International Breweries Plc (“The Company”) today announced the completion of the N164.4 billion Rights Issue, following receipt of the Securities & Exchange and Commission’s approval of the Basis of Allotment. This Offer is Nigeria’s largest ever Rights Issue and was 100% subscribed.
The net proceeds will be used to reduce the Company’s leverage, thereby setting the Company on the path to profitability post the landmark construction of the Gateway plant (the second largest Brewery plant in Africa) costing over US$250 million.
Commenting on the Rights Issue, a senior executive of International Breweries Plc, said:
“Through the Rights Issue, the Company’s capital structure is expected to change remarkably as long-term debt is being replaced with equity, thereby easing the burden of interest payments, increasing management’s flexibility to take advantage of growth opportunities as well as eliminating volatility in earnings.”
Kemi Awodein, Managing Director – Chapel Hill Denham Advisory Limited added:
“We are honoured to have led this landmark transaction, which is Nigeria’s largest rights issue. We believe that the Company is now better positioned for accelerated growth post this rights issue. The rights issue demonstrates our belief in the Company’s compelling equity story and the long term prospects of the Company.”
Chapel Hill Denham Advisory Limited acted as sole Issuing House to the rights issue and is Nigeria’s best Investment Bank and best Bank for Advisory in Africa according to Euromoney for 2019.
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