Guinness clarifies N40bn rights’ issue

. Stakeholders endorse it

Stakeholders of the Nigerian capital market Tuesday, endorsed the rights issue of Guinness Nigeria Plc which opened on 24th July 2017 to end August 30th.

The endorsement was given at the stockbroking community by the doyen of the day, Mr. Aggrey Otakpo, during the presentation of the company’ s facts behind the issue at the Nigerian Stock Exchange(NSE)event center, Customs street Lagos.

Guinness Nigeria Plc on Tuesday presented a breakdown of its plans to raise N39, 700,688,598 by way of rights issue to its existing shareholders, the event was attended by a cross section of stakeholders including shareholders, fund/portfolio managers, regulators, auditors, issuing houses and registrars.

At the company’s Extra-ordinary General Meeting (EGM) in January 2017, shareholders authorized the Board of Directors to proceed with the rights Issue.

A total of 684,494,631 ordinary shares of 50 kobo each will be offered to existing shareholders in the ratio of five new ordinary shares for every eleven ordinary shares held by shareholders whose names appeared on the register of members of the Company at the close of business on Wednesday, 15 March, 2017.The issue price is N58 per share.

Stanbic IBTC Capital Limited is the issuing house to the offer which opened on Monday 24 July, 2017 and will close on Wednesday 30 August, 2017.

Managing Director of Guinness Nigeria Plc, Peter Ndegwa said: “This Rights Issue will allow the Company to deliver on its strategic objectives and give all our shareholders a unique opportunity to increase their shareholding in the company. 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.”

He said that as part of commitment to the rights issue, the company’s largest shareholder, Diageo’ has committed to taking all their rights, a development that showed confidence in the Nigerian market by global investors.

The net proceeds of the Issue, already approved by the Securities and Exchange Commission and Nigerian Stock Exchange (SEC), Ndegwa said ‘will help the Guinness Nigeria repay outstanding loan obligations, improving the operational and financial flexibility of the Company.

Mr. Babatunde Savage, Chairman, Guinness Nigeria Plc, stated that this process is part of the Company’s long term plans to continue to invest and return to profitability, commenting “We have been 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 various other stakeholders up to this point.”

Stanbic IBTC Capital Limited, is acting for Guinness Nigeria Plc as the Issuing House for the Rights Issue. Full terms of the Rights Issue will be set out in a Rights Circular to be mailed directly to shareholders of the Company, which contains a Provisional Allotment Letter and the Participation Form.

Earlier in his address, Mr. Haruna Jalo Waziri, Executive Director, Nigerian Stock Exchange, Capital market division, lauded Guinness Nigeria for its commitment to boosting Nigeria’s economy through its transparent and rewarding business standards.

He expressed confidence in the company’s rights offer which he said would enable Guinness Nigeria enhance its operations and create further earning opportunities for its shareholders and all stakeholders.