25 Jul 2017

Guinness Nigeria N40bn rights issue: Fact behind the issue

25 July 2017: Lagos, Nigeria - Guiness Nigeria Plc yesterday presented a detailed breakdown of its plans to raise N39,700, 598 by way of rights of issue to its existing shareholders. The comapny shared details of its righs isue programmer at a presentation which was held at the Nigerian Stock Exchange, Lagos. The event was attended by a cross section of stakeholders including: sharehoders, fund/portfolio managers, regulators, auditors, issuing houses and registras.

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 forevery 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.

The net proceeds of the Issue, already approved by the Securities and Exchange Commission and Nigerian Stock Exchange, will help the company repay outstanding load obligations, improving the operational and financial flexibility ofthe Company. At its extra-ordinary General Meeting in January 2017, shareholdders of the company have authorized the Board of Directors to proceed with the issue.

Commenting, Peter Ndegwa, MD of Guiness Nigeria Plc said:

"This Rights Issue will allow the company 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, optimise our balance sheets and improve the Company's financial flexibility."

Babatunde Savage, Chairman, Guiness Nigeria Plc. stated that this process is part of the Company's long term plans to continue toinvest and return to profitability commenting "We have been in Nigeria for 67 years and while it has ben challenging in recent times for many Nigeria businesses, we remain commited to this market as evidenced by our decision to offer this Rights Issue. We are grateful for the suport that we have received from our shareholders and various other stakeholders up to this point"

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

Investors should read the Rights Circula and where in doubt consult their Stockbroker,Fund/Portfolio Manager, Accountant, Banker, Solicitor or any other professional advisor for guidance before subscribing.

 

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Media Enquiries:

Communications Manager, Guinness Nigeria Plc

Email:  osita.abana@diageo.com

Phone: +234 1 270 9100 ext. 3138

 

About Guiness Nigeria

Guinness Nigeria Plc was established in 1950 and listed on the Nigeria Stock Exchange in 1965.With a shareholder base of over 75,000 shareholders, it is also one ofthe foremost quoted companies in Nigeria. The company built its first brewery in Ikeja in 1862 and currently has facilities in Ogba, Benin City and Aba. Included in its portfolio are such acclaimed brands Guiness Foreign Extra Stout, Guiness Extra Smooth, Malta Guiness, Malta Guiness, Harp Lager beer, Smirnoff Ice, Satzenbrau Pilsner, Dubic Lager Beer, Harp Lime, Oriji, SNAPP, Johnnie Walker, Ciroc, Baileys and many others. Guiness Nigeria is a subsidiary of Diageo PLCl, a global leader in beverage alcohol with an outstanding collection of brands across Spirits and Beer categories.

In 2016, Guiness Nigeria Plc bcame the first totalk beverage company in Nigeria by acquiring the rights to distribuite the international premium spirits like Johnnie Walker Whisky and Baileys liqueur in the country and later commisioning a N4.7 billion spirits line for locally manufactured spirits at the Benin plant.

Guiness Nigeria Plc is also a champion for community development. Leveraging its flagshipof 'Water of Life' scheme, the company has delivered 35 water facilities across 24 states in Nigeria helping to provide clean drinking water for over 1.5 million Nigerians.

 

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