Guinness Nigeria Plc, plans to raise N39,700,688,598 by way of rights to its existing shareholders on the basis of five new shares for every 11 shares held by shareholders, whose names appeared in the register of members of the company as at March 15, 2017, at an issue price of N58 per share.

A statement issued Tuesday, July 3, 2017 said Guinness Nigeria has received clearance from Nigeria’s Securities and Exchange Commission, SEC, and approval from Nigerian Stock Exchange to list Guinness Nigeria new shares on the Nigerian Stock Exchange.

The funds would aid Guinness Nigeria in re-strategizing in the face of the present challenging business environment in Nigeria, and perhaps, boost its records of strong performance and business growth.  The terms of the Rights Issue would be set out in a circular to be mailed directly to its shareholders and contain provisional allotment letter and participation form.

The Right Issue price represents discount of 15 percent to Guinness closing share price on March 14, 2017, the last business day before the announcement of the proposed Rights Issue by Nigerian Stock Exchange.  Stanbic IBTC Capital Limited is the issuing house.

According to the statement, Peter Ndegwa, Managing Director, Guinness Nigeria said: “This Rights Issue will allow the Company to deliver on its strategic objectives and give all our shareholders a unique opportunity to increase the number of shares they hold. Our expectation is that funds raised will help mitigate the impact of increasing finance costs, optimize our balance sheet and improve the company’s financial flexibility.”

Chairman, Guinness Nigeria, Babatunde Savage said: “We have been here in Nigeria for 67 years and, while it has been challenging in recent times for many Nigerian businesses, we remain committed to this market as evidenced by our decision to offer this Rights Issue. We are grateful for the support that we have received from our shareholders and other stakeholders up to this point.”

Guinness Nigeria brands are renowned internationally with distinguished taste and quality.  It acquired the rights to distribute international premium spirits, such as Johnnie Walker Whisky and Baileys Liqueur in Nigeria.  Guinness Nigeria commissioned N4.7 billion line to manufacture local spirit in its Benin Plant.