TheCable

After recording its first annual loss in 30 years, Guinness Nigeria Plc, has secured the approval of its shareholders to raise N40 billion via rights issue.

The approval was granted by the shareholders at the company’s Extra-Ordinary General Meeting (EGM) which held on Tuesday, January 24, 2017 in Lagos.

Babatunde Savage, chairman, Guinness Nigeria Plc, said the rights issue was aimed at mitigating the impact of the country’s challenging business environment.

“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,” he said.

“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.

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.”

Guinness Nigeria Plc in 2016 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.

The meeting was also attended by Bismarck Rewane, CEO Financial Derivatives and non-executive director of Guinness Nigeria.