By Chinwendu Obienyi and Chukwuma Umeorah
Shareholders of International Breweries are eagerly anticipating the commencement of the rights issue, stating that their participation will see them benefitting from the company’s future growth and profitability.
They made this known during the company’s Extraordinary General Meeting (EGM) which held in Lagos recently.
The company during the meeting reiterated its commitment to long-term investment in Nigeria and as part of its strategy to return the company to profitability, proposed and got overwhelming support from its shareholders to embark on a rights issue plan.
According to the company, the generated funds from the rights issue/shareholder loan are earmarked for the full and final settlement of its dollar loan which was utilised to build its state-of-the-art plant – the largest in sub-Saharan Africa – in Ogun State.
Due to the constraints of sourcing US Dollars, other related forex volatility challenges, surge in operational costs and other macro-economic impacts, IBPLC had difficulty paying down the loan over the years.
Speaking on the development, the Chairman of the Board of Directors, HRM Igwe Nnaemeka Achebe, emphasized the full support of AB InBev for the shareholder’s loan, stating, the repayment of the loan will inject the desired equity to recapitalise the business, thereby setting it on the path to profitability, in addition to driving IBPLC’s value which will ultimately translate to better returns for its shareholders.
Continuing, the Chairman said it is noteworthy that IBPLC’s parent company’s support of the rights issue is an indication of its confidence in Nigeria.
He said, “Anheuser-Busch InBev (ABInBev) fully supports this process and has committed to taking up their rights in full. This decision, including threading the path of the shareholder loan, demonstrates ABInBev’s commitment to the success and sustainability of IBPLC, including its dedication to long-term presence and continuous strategic investments in Nigeria ‘’.
Responding, the National Coordinator, Progressive Shareholders Association of Nigeria, Boniface Okezie stated that shareholders are eagerly awaiting the commencement so it can take up the right issue.
“This is because after paying the loan we know the company will start generating profit and start paying dividends to shareholders. We want to thank International Breweries and ABInBev for keeping faith with Nigeria despite the economic challenges. I appeal to the minority shareholders to endeavour to do what they can to participate in the rights issue.”, Okezie said.
Also speaking, the National Coordinator, Independent Shareholders Association of Nigeria and Chairman Audit Committee, Moses Igbrude said, “This decision we are taking today will enable us to drive more value for the company. IBPLC borrowed to build a world-class brewery and the profit the company makes has been used in servicing this debt. The board is taking the right step and we all support this resolution.”
Finance Director, International Breweries Plc, David Tomlinson, acknowledged the company’s robust market share growth across Nigeria while encouraging shareholders to take up the rights issue offer.
“Our company has been recording remarkable success with our quality product offerings and market share gains. This right issue offer, including the shareholder loan, will make a meaningful impact in the profitability of our organisation.”