By Eromosele Abiodun
The Nigerian Stock Exchange (NSE) has admitted a
total of 6.3 billion ordinary shares of 50 kobo each
belonging to Champion Breweries Plc to trade on the
exchange.
The NSE said the listing followed the company’s
recently concluded rights issue which closed on
September 10th, 2014, thus increasing the issued
quantity of the company’s share to 7.2 billion.
Under the rights issue, the company offered the
shares, which have now been admitted for trading, to
investors in a bid to raise N11.65 billion.. The shares
were offered to existing shareholders in the ratio of
seven new ordinary shares for every ordinary share
held as of the close of business on Wednesday, May 7,
2014 at N1.85 per share.
Champions Breweries had announced plans to
recapitalise its operations earlier in the year.
In July this year, the company announced that it had
concluded arrangements to raise N11.65 billion via
rights issue, having received the approval of its
shareholders to raise up to N13.7 billion additional
capital at its annual general Meeting, which was held
on May 16, 2014.
“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,” it said in a statement.
The statement had quoted the Chairman, Board of
Directors, Champion Breweries, Chief Senas Ukpahah,
as saying at the signing ceremony in Lagos that the
rights issue, when concluded, would be key to
transforming the company and ensuring its growth.
He 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.”
Source: Thisday newspaper
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