has opened application list for its N39.7 billion rights issue, paving the way for shareholders to pick up their rights. The rights are also being traded on the automated trading system at the Nigerian Stock Exchange.
According to The Nation, application list for the rights issue opened on July 24, 2017 and will close on August 30, 2017. The opening of application list followed the clearance of the issue documents by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) and the endorsement of the offer documents by all relevant parties.
Guinness Nigeria is offering 684.49 million ordinary shares of 50 kobo each at N58 per share to existing shareholders on the basis of five new shares for every 11 shares held as at the close of business on March 15, 2017.
The offer price of N58 per share is a discount of 12.25 per cent on the company’s share price of N66.10 on the opening date. The discount allows shareholders to trade their renounced shares at the NSE and realise the premium on the offer price.
Diageo Plc, United Kingdom, the majority core investor in Guinness Nigeria, is expected to inject additional N21 billion in Guinness Nigeria by subscribing for its rights. The rights issue provides another window for Diageo to inject capital into the Nigerian subsidiary after the multinational backed down from its earlier proposal to acquire additional equity shares in Guinness Nigeria.
Managing Director, Guinness Nigeria Plc, Peter Ndegwa, said the net proceeds of the new capital raising will support the company in executing its strategy in the context of ongoing external economic challenges.
According to him, the rights issue will allow the company to deliver on its strategic objectives and give all its shareholders a unique opportunity to increase the number of shares they hold.
Last year, Guinness Nigeria became the first total beverage alcohol company in Nigeria by acquiring the rights to distribute international premium spirits like Johnnie Walker whisky and Baileys liqueur in Nigeria and later commissioning a N4.7 billion spirits line for locally manufactured spirits at its Benin plant.
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