Premier Breweries of Nigeria has announced plans to raise N800 million (about £3.14m) by way of a rights issue. The money is required to allow it to start operations again. It closed down in the 1990s due to mis-management and too much interference from government politicians.
The rights issue aims to sell an additional 867,680,940 ordinary shares to existing shareholders.
Terms of the rights issue:
- 7 new shares for each share held
- record date is 31st July 2010
- Call price: N1
Current exchange rate is 1 Nigerian naira = 0.3936p (approx)
Keith Francis Gammage, the acting manager director, explained that they hope to start production by July and will be producing beer and malt drinks again. They are also in the process of considering other options.
Gammage also spoke of many other obstacles to development including the poor infrastructure in Nigeria meaning the transportation of products was very expensive and unreliable.