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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