International Breweries’ proposed rights issue has been authorized by the company’s shareholders.
A corporate notification that was submitted to the Nigerian Exchange Limited states that the approval was granted during the company’s most recent Extraordinary General Meeting, which took place in Lagos.
The IB Plc board of directors said in January that it was thinking about raising cash through a rights issue in addition to increasing share capital.
As of the end of December 2023, the brewer’s issued share capital was 26,862,069,000 ordinary shares, each valued at 50 kobo.
An stock stake of 87.29% in the corporation was controlled by Brauhaase International Management GMBH and its ultimate holding company, AB InBev Nigeria Holding BV.
According to a part of the notice, “The company is hereby authorized to raise additional equity capital through a rights issue to the company’s current shareholders on terms and conditions that shall be determined by the directors, including but not limited to the amount of the rights issue, price of the rights issue, rights ratio, and number of shares to be provisionally allotted.
“That all future ordinary shares in the company’s share capital, including all new ordinary shares that are to be created pursuant to the increase of the Company’s share capital, shall have a nominal value of two Kobo (N0.02) each. That the nominal value of all existing ordinary shares in the Company’s share capital be and is hereby sub-divided from fifty kobo (N0.50) each to two kobo (N0.02) each.”
The brewer claimed that the new resolution will also cause its Memorandum of Association to be revised to reflect the fact that the company’s share capital is N537,241,317, which is split into 26,862,065,850 common shares, each worth N0.02.
IB’s income increased from N218 billion over the same period the previous year to roughly N264 billion in 2023. Its loss after tax, however, rose by 174.98 per cent to N59.47bn from N21.63bn.
