News Column

Champion Breweries to Raise N11.65 Billion Through Rights Issue

July 21, 2014

Eromosele Abiodun

Champion Breweries Plc has announced that arrangements to undertake a rights issue to raise N11.65 billion are now being concluded following clearance of the issue documents by the Securities and Exchange Commission (SEC). The company has also received listing approval for the new shares from The Nigerian Stock Exchange (NSE).

At the annual general meeting (AGM) of Champion Breweries Plc, held in Lagos recently, shareholders of the company authorised the board of directors to raise additional capital up to N13.7 billion.

THISDAY understands that a total of 6,300,000,000 ordinary shares of 50 kobo each will be offered to existing shareholders in the ratio of seven new ordinary shares for every ordinary share held as at the close of business on Wednesday, 07 May 2014 at N1.85 per share.

Stanbic IBTC Capital Limited is the issuing house to the issue, which is expected to open on Monday, 04 August 2014 and close on Wednesday, 10 September 2014.

The company said the net proceeds of the Issue will be used to repay the company's existing debt and reduce the interest burden which will potentially enhance the company's operations and reposition it for profitability and growth.

At the signing ceremony held Lagos last week, Chairman of the board of directors of the company Mr. Senas Ukpanah, said: "The successful outcome of the rights issue will signify a huge step towards the implementation of Champion Breweries' turnaround programme which is crucial in reversing the fortunes of our company."

He also urged the company's shareholders to seize this opportunity and take up their rights so as to support the company's future growth plans.

The Head of Equity Capital Markets, Stanbic IBTC, Mrs Oyinda Akinyemi, on behalf of the respective professional parties involved, expressed their commitment towards the successful completion of the issue.

The rights circular for the issue, which contains a Provisional Allotment Letter and the Acceptance/Renunciation Form, will be mailed directly to shareholders of the company.

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Source: AllAfrica

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