International Breweries Plc has received final endorsement from its stakeholders to raise N7.2bn, translating to the shareholders taking up 1.479 billion shares of 50 kobo each at N5.08 per share by a way of Rights Issue.The stakeholders gave the endorsement at the companys Completion Board Meeting in Lagos on Wednesday. The approval to raise the amount itself was first given by the shareholders before endorsing the Rights Issue option.According to the offer prospectus, the parties to the transaction include GTI Capital Limited, which is the lead issuing house; Radix Capital Partners Limited and Meristem Securities Limited which are the joint issuing houses.The Managing Director of the Company, Otunba Michael Daramola, noted that the injection of the expected sum of N7.27bn would boost its business and deliver higher returns for shareholders.According to him, the offer, which has been scheduled to open on November 21, will close in the last week of December.He said, The approval of the Nigerian Stock Exchange, the Securities and Exchange Commission and other relevant regulatory bodies have been obtained for trading in the rights, and we are sure that the issue would be successful.Shareholders stand to benefit from the issue, as the proceeds would ultimately help to boost the companys bottom-line and the business as a whole.Daramola explained that currently, most of the profits being made by the company were being used to service loans it incurred in the last few years. According to him, the loans have been compounded by the fluctuating exchange rate in the country.He added that as soon as the Rights Issue was completed and the companys loan books cleaned up, it the companys profitability would increase further.Speaking on its future plans, the Chairman of the company, Mr. Gil Martignac, noted that the company was committed to ensuring and sustaining profitability in the short term and long term.He added that plans were being put in place to establish a creative distribution network that would serve as a platform for growth and profitability.Martignac said, The company is well placed to meet the challenges of increasing its market share of what continues to be a vibrant and expanding industry and this would be done in a way that will enhance potential for long-term growth and productivity.We intend to introduce high density brewing by next year. However in the short term, productivity capacity will continue to be restricted by available facilities.Martignac added that by 2012, the investment would be made in a second bottling line and other features to improve capacity.All these are scheduled to come on stream in 2013, thus increasing capacity utilisation to about 1,600,000 hectoliters, he stated.He also reinstated the boards commitment to a continuous programme of capacity building that would promote professionalism and excellence in its operations.Our objective is to run a company with sustainable growth and enhanced returns, as well as retain investors confidence, he added.
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