The management of the Guinness Nigeria plc has concluded its plans to N39, 700,688,598 involved 684,494,631 ordinary shares being offered by way of Rights.
L – R shows Ron Plumridge, Finance Director, Guinness Nigeria Plc; Viola Graham-Douglas, Corporate Relations Director, Guinness Nigeria Plc; Haruna Jalo-Waziri, Executive Director, Capital Markets Division, The Nigerian Stock Exchange (NSE); Peter Ndegwa, Managing Director/CEO, Guinness Nigeria Plc; Babatunde Savage, Chairman, Guinness Nigeria Plc and Rotimi Odusola, Company Secretary, Guinness Nigeria Plc at the Facts Behind the Issue at the NSE today.
AdvertisementThe Rights issue price of N58.00 per share while the existing shareholders shall entailed 5 (five) new ordinary shares for every 11(eleven) ordinary shares held as at the close business on Wednesday March15, 2017.
Speaking on the floor of The Nigerian Stock Exchange (The NSE) during the Facts Behind the Issue, The Chairman, Guinness Nigeria Plc Babatunde Savage Said, the deals of the Rights issue is opened to public as from Monday July 24, 2017 and to close the deal on Wednesday August30, 2017.
Sacage on Tuesday July 25, 2017, disclosed that Guinness Nigeria’s entire issued and paid up capital is listed on The Nigerian Stock Exchange (The NSE) adding that the rights issue being undertaken to enable Guinness Nigeria optimizes its capital structure by deleveraging as balance sheet, thereby reducing costs and strategically position it for future growth.
L – R shows Funso Akere, Chief Executive, Stanbic IBTC Capital; Haruna Jalo-Waziri, Executive Director, Capital Markets Division, The Nigerian Stock Exchange (NSE); Babatunde Savage, Chairman, Guinness Nigeria Plc; Peter Ndegwa, Managing Director/CEO, Guinness Nigeria Plc at the Facts Behind the Issue at the NSE today.
He furthermore, it was stated that the proceeds will also be applied towards the repayment of the company’s various outstanding loan obligations to all financial institutions and major shareholders (Diageo) in company. These were obtained to fund the company’s working capital needs and to expand operations which expected to end in quarter four 2017.
The management lamented that all these loans have significant increase in gearing ratio and net finance costs, putting pressure on cash flows which is a live wire of the company.
The chairman comments that the rights issue is one of the critical steps enabling the company to achieve its strategic objectives.He also said that the company has embarked on a number of restructuring initiatives including local sourcing and broadening its product portfolio.
“The Rights Issue will reposition the company to deliver on its strategic objectives and give all shareholders a unique opportunity to increase the number of the shares they hold.
“Diageo has indicated that it is fully committed to the success of the Rights issue and it willing to take up its Rights issue in full.
“We therefore encourage all shareholders to carefully consider the opportunity to exercise their rights in full, to reaffirm support for Guinness Nigeria and as declaration of continued in the company’s growth potential.