SEC Approves Extension of Nigerian Breweries Rights Issue

By Aduragbemi Omiyale

The rights issue of Nigerian Breweries Plc has been extended by one week to Friday, October 18, 2024, a statement from the brewer has disclosed.

The exercise was earlier scheduled to close on Friday, October 11, 2024, after commencing on Monday, September 2, 2024.

Business Post reports that the extension of the rights issue of Nigerian Breweries was approved by the Securities and Exchange Commission (SEC).

In the notice filed on the Nigerian Exchange (NGX) Limited, the beer maker explained that the extension was to “accommodate the normal working days activities that were disrupted by the public holidays” while the exercise was on.

During the initial scheduled dates of the rights issue, the nation observed a few public days, including the Eid-el-Malud and the Independence Day anniversary holidays in September and October, respectively.

“Nigerian Breweries Plc is pleased to notify its esteemed shareholders and the Nigerian Exchange Limited (the “NGX”) that the acceptance period for its rights issue which opened on September 2, 2024, and was scheduled to close on October 11, 2024, has been extended to October 18, 2024, following the approval of the Securities and Exchange Commission.

“The extension of the acceptance period is to accommodate the normal working days activities that were disrupted by the public holidays that were observed in the course of the initially scheduled acceptance period.

“The extension aims to provide shareholders with ample opportunity and time to subscribe to their rights,” the statement read in part.

It said further, “During the extended period, dealings by the company’s insiders on the company’s shares will continue to be strictly limited to participation in the rights issue as earlier approved by the NGX in respect of the non-dealing period with regard to the company’s unaudited financial statements for the period ended September 30, 2024.

“Shareholders are advised to contact their stockbrokers for more details about the rights issue.”

Nigerian Breweries is offering existing investors 11 new shares for every five held at a unit price of N26.50, with a qualification date of July 12, 2024.

A total of 22,607,491,232 shares are involved in this capital raise scheme of Nigerian Breweries, makers of several iconic brands in the local market.

The company disclosed that proceeds from the rights issue would be used to “reduce the increasing debt burden and attendant financing costs.”