World’s leading breweries are investing more than N800 billion in the Nigerian breweries sub-sector in major boosts to the country’s quest for foreign direct investments (FDIs).
Regulatory documents obtained yesterday showed that foreign majority investors are injecting some N800 billion in Nigeria’s two largest brewers- Nigerian Breweries (NB) Plc and International Breweries (IB) Plc, the largest recapitalisations in recent periods.
The documents indicated that Netherland-based Heineken N.V. has secured approval to invest not less than N341 billion in NB through a rights issue that pre-allocate about 12.9 billion ordinary shares to the multinational.
Heineken N.V., which has shown strong appetite for the Nigerian market, could scale up investments to more than N400 billion, according to sources in the know.
Anheuser-Busch InBev (AB InBev), a world’s leading brewer, has successfully concluded a major recapitalisation of IB, with injection of more than N400 billion in the Ilesa, Osun State-based brewer.
NB is undertaking its biggest recapitalisation ever with a N599.1 billion rights issue, where Heineken N.V. has firmly committed to providing at least N341 billion. NB is offering 22.61 billion ordinary shares of 50 kobo each at N26.50 per share. The shares have been pre-allotted on the basis of 11 new ordinary shares for every five ordinary shares held as at the close of business on Friday, July 12, 2024. The offer is expected to open over the next week.
IB, which had launched a N588.3 billion recapitalisation, indicated it successfully raised N516.22 billion. Multiple sources in the know said AB InBev provided more than N440 billion of the total fund raised.
IB had floated a rights issue of 161.17 billion ordinary shares of 2.0 kobo each to existing shareholders at N3.65 per share. The rights issue was pre-allotted on the basis of six new ordinary shares for every one existing ordinary share held as at the close of business on Thursday, May 02, 2024.
Nigerian Exchange (NGX)’s records showed that 141.43 billion ordinary shares of 2.0 kobo were picked up, representing 87.75 per cent subscription level. Sources in the know said AB InBev, which held majority equity stake of 75.1 per cent in IB prior to the offer, fully picked up its rights.
