Guinness Nigeria Plc gets the approval of its shareholders to raise N40bn via rights issue to its existing shareholders.
The ability of the rights issues to help Guinness recuperate from its N4.4 billion loss in 2016 is in question as a result of the high inflation rate at 18.5% and the weakening purchasing power of the Naira.
Urging shareholders to increase their holdings, Babatunde Savage, Chairman, Guinness Nigeria Plc says, ‘Some companies are closing down while others are retrenching their staff. To procure foreign exchange is a problem. Diageo gave us loan to procure raw materials in foreign currency and that is the advantage of being a multinational firm’.
Guinness Nigeria Plc is a major stakeholder in the Nigerian brewery industry. The approval will ensure that it doesn’t tow the line of companies that have either left the Nigerian market, cut down on production, or reduce its labour force.