Nigeria: Guinness Nigeria starts receiving subscriptions for its 39.7 bln naira share sale

Guinness Nigeria has started receiving subscriptions for its 39.70 billion naira ($126 mln) share sale to existing shareholders, which will end in five weeks' time, Reuters reporting citing company officials on July 24.

The beer maker, the local unit of the world's leading spirit maker Diageo, said in a statement shareholders can buy five new shares from the company for every 11 held, at 58 naira each, before the offer closes on August 30.

The company, which is 54 percent owned by Diageo, reported its first annual loss in 30 years in September last year, triggering the rights issue.

Its British-based parent has said it was willing to take up its rights in the share issue to maintain its shareholding.

Guinness Nigeria shares, which have fallen 20.4 percent so far this year, traded flat on July 24 at 65.10 naira on the Lagos bourse, a 12 percent premium to the rights price.

The stock fell 31 percent last year.

Investors who do not currently hold Guinness shares but want to participate in the offer can do so by buying the rights of an existing shareholders who is unable to subscribe to the offer through the stock market, it said.

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