The Securities and Exchange Commission (SEC) has granted approval for Nigerian Breweries Plc to extend its rights issue worth ₦599.1 billion, a significant step in providing existing shareholders with more time to increase their stake in the company. Initially, the acceptance period for the rights issue was set to conclude on October 11. However, after careful consideration and addressing potential disruptions, the SEC has now extended this deadline to October 18, 2024. This adjustment is particularly crucial given the interruptions caused by public holidays that may have affected the ability of shareholders to participate before the original closing date.
Nigerian Breweries Plc officially communicated this extension in a statement from its Legal Director/Company Secretary, Uaboi Agbebaku. In the announcement, Agbebaku expressed satisfaction in informing both shareholders and the Nigerian Exchange Limited about the new timeline. He emphasized that the extension aims to ensure that all shareholders are given ample opportunity to subscribe to their rights, a process that began on September 2 and was originally slated for a much shorter acceptance window. The company’s commitment to facilitating shareholder participation reflects an understanding of the impact that timing can have on investment decisions.
As part of the rights issue, Nigerian Breweries is offering 22.61 billion ordinary shares at a price of 50 kobo each, totaling ₦26.50 per share for existing shareholders. The rights issue is structured to allow shareholders the opportunity to enhance their ownership in the company through a ratio of 11 new shares for every five shares they held as of the close of business on July 12, 2024. This approach not only helps the company raise essential capital but also strengthens the bond between the company and its shareholders, enabling them to directly benefit from the company’s growth.
Agbebaku highlighted the intention behind the extension, asserting that it aims to provide shareholders with sufficient time to exercise their rights, especially in light of the reduced working days earlier in the acceptance period due to public holidays. This proactive stance is indicative of Nigerian Breweries’ dedication to engaging its investors and ensuring their interests are adequately represented and accommodated in corporate decisions. Moreover, the extension also comes with a stipulation; during this period, any insider dealings in the company’s shares will be limited strictly to participation in the rights issue, ensuring transparency and compliance with regulatory standards.
Furthermore, Agbebaku urged shareholders to seek guidance from their stockbrokers to clarify any questions they might have regarding the rights issue. He encouraged them to take full advantage of the extended acceptance period, indicating that it is a valuable opportunity for investors to capitalize on their current stakes in the company. This advice not only reinforces the importance of remaining informed during this process but also highlights the company’s transparency in dealings with its shareholders, a critical factor in maintaining trust and confidence in the corporate governance of Nigerian Breweries.
In summary, the extension of the acceptance period for Nigerian Breweries’ rights issue is a notable development in the company’s efforts to strengthen its capital base while providing its shareholders with convenient access to increase their holdings. By responding to public holiday disruptions and facilitating greater participation, Nigerian Breweries demonstrates its commitment to shareholder engagement. The provision for well-informed decision-making, alongside restrictions on insider dealings during this period, ensures that the rights issue will be conducted in a transparent and equitable manner, ultimately benefiting both the company and its shareholders in the long run.
