Shareholders of Guinness Nigeria Plc, at the company’s Extra-Ordinary General Meeting (EGM) on Tuesday, has given approval to the proposed Rights Issue of N40 billion.
Speaking on behalf of shareholders, President, Nigerian Shareholders Solidarity Association, Timothy Adesiyan, noted that the Right Issuance was an opportunity for local shareholders, thus urging participation of the Right Issue, while pleading with the company to allow shareholders who are not ready to take their shares to sell their rights on the Nigerian Stock Exchange.
Babatunde Savage, Chairman, Guinness Nigeria Plc, at the moment said: “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,” he said.
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 N40bn as fresh cash injection into the business operations.
Also speaking at the meeting, 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
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