Guinness Nigeria to approve rights issue at EGM

Guinness Nigeria Plc has announced its intention to hold an Extraordinary General Meeting of its shareholders to approve resolutions for a rights issue.

The EGM had been scheduled for January 24, 2017 in Lagos, the firm said in a statement on Tuesday.

Guinness Nigeria, in the statement, said it believed that the rights issue would allow the company to optimise its balance sheet, while improving its financial and operational flexibility.

If approved at the EGM, the full details of the rights issue which is expected to raise up to N40bn, if fully subscribed, would be issued prior to the launch.

The rights issue is subject to the approval of the relevant regulatory authorities, according to the brewer.

The firm in October last year announced a revenue increase of six per cent for the first quarter of its financial year ending September 30, 2016.

The financial statements also showed that the company had a loss after tax position of N2.2bn in the period.

The Managing Director/Chief Executive Officer, Guinness Nigeria, Mr. Peter Ndegwa, had said the revenue growth was in spite of continuing challenges in the operating environment, adding, “The environment remains tough but we have seen contributions from our mainstream and international premium spirits brands as well as continuing growth of our value brands. These were the key drivers of the six per cent revenue growth recorded for the quarter.

“Going forward, innovation will continue to be a big part of our strategy us as we look to deepen our participation in the mainstream and value segments. We will also continue to invest behind our brands with a key focus on building the right portfolio for future growth and re-shaping our organisation to take advantage of what is likely to continue to be a challenging market in the short to medium term.”

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