Nigeria: International Breweries seeks approval for $379.9 million shareholder loan and debt conversion

The Board of International Breweries Plc will as part of a special resolution at the company’s Extra-ordinary General Meeting (EGM) seek approval of a $379.9 million shareholder loan and debt-to-equity conversion, Nairametrics reported on March 19.

This was contained in the company’s notice of EGM slated for April 9, 2024, in Lagos to the Nigerian Exchange Limited and Investing Public seen by Nairametrics.

The statement noted that International Breweries Plc has secured approval for a $379.9 million shareholder loan from AB InBev Nigeria Holdings BV, and intended to repay a loan from Citibank Abu Dhabi.

Additionally, the Board of Directors has been authorized, pending regulatory compliance, to allocate convertible loans or other facilities owed by the company to individuals towards payment for shares subscribed to in a Rights Issue approved by shareholders.

The statement reads:

“That the loan of US$379.9 million granted to International Breweries Plc by AB InBev Nigeria Holdings BV (‘the Shareholder Loan”) in respect of the repayment of the loan obtained by the Company from Citibank Abu Dhabi be and is hereby approved in accordance with the terms and conditions presented by the Board of Directors.

“Subject to compliance with the applicable regulatory requirements, the Directors be and are authorised to apply any convertible loan, shareholder loan, or any other loan amount/facility due to any person from the Company as may be agreed between the person and the Company towards payment for any shares subscribed for in the Rights Issue that has been approved by the shareholders of the Company.

“The Directors be and are hereby authorised to approve, sign and/or execute all documents, appoint such parties and advisers as may be necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authority”.

As part of the ordinary resolution, the company will also seek the shareholders’ approval that a Director and Company Secretary be authorized to sign and execute all documents necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authority.

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