Guinness Nigeria Holds EGM Tuesday to Approve Rights Issue

By Modupe Gbadeyanka

To get the approval of its shareholders for the planned Rights Issue, Guinness Nigeria has announced it will hold an Extra-Ordinary General Meeting (EGM) on Tuesday, January 24, 2017.

The EGM, which will hold in Lagos, will set the scene for the company to raise up to N40 billion. Guinness Nigeria a subsidiary of Diageo Plc, was established in 1960 and has a base of over 70, 000 local and international shareholders.

At the end of 2016, the company announced its intention to offer a Rights Issue as part of plans to optimise its balance sheet and improve its financial flexibility.

Guinness Nigeria last year became the first total beverage company when it acquired rights to distribute international premium spirits like Johnnie Walker and Baileys in Nigeria in January 2016 and later commissioned a spirits line for locally manufactured spirits at its Benin plant in November.

This week, the firm is also expected to release its first half results for the 6-month period ended December 30, 2016.