Shareholders Okay Guinness Nigeria N40b Rights Issue

By Modupe Gbadeyanka

Today, Tuesday, January 24, 2017, shareholders of Guinness Nigeria Plc held an Extra-Ordinary General Meeting (EGM) in Lagos to consider the request of the company to approve the proposed N40 billion Right Issue.

At the meeting, attended by local shareholders and representatives of international shareholders, the request was approved.

In addition to the Rights Issue, all other company resolutions were passed at the event.

Speaking on the meeting, Mr Babatunde Savage, Chairman, Guinness Nigeria Plc, disclosed that, “Guinness Nigeria has been in this country for over 60 years and, in that time, we have continued to add significant economic and social value to Nigeria and Nigerians.

“We believe this Rights Issue will positively impact on the financial performance of Guinness Nigeria and help mitigate the impact of increasing finance costs in what continues to be a challenging economic environment in Nigeria.

“I call on all my fellow shareholders to take this opportunity and support the company’s objectives.”

Guinness Nigeria Plc, which is a subsidiary of Diageo Plc, had announced at the end of 2016, its intention to offer a Rights Issue as part of plans to optimise its balance sheet and improve its financial flexibility.

With the approval of its shareholders, the company is now in a position to raise up to N40 billion as fresh cash injection into the business operations.

Also speaking at the meeting, Mr Peter Ndegwa, Managing Director/CEO, Guinness Nigeria Plc said that the company has good fundamentals and potentials for the future.

“Guinness Nigeria is a company with excellent fundamentals and we have the right strategy and the right people to grow our business for the future.

“This Rights Issue in combination with our productivity and cost optimization drive will help provide the fuel to continue to build this business for Nigeria and Nigerians,” Mr Ndegwa said.

Guinness Nigeria Plc last year became the first total beverage company in Nigeria when it acquired rights to distribute international premium spirits like Johnnie Walker and Baileys in Nigeria in January 2016 and later commissioned a spirits line for locally manufactured spirits at its Benin plant in November.

This week, the company is also expected to release its first half results for the 6-month period ended December 31, 2016.