Nigeria: Shareholders of International Breweries approve $379.9 million loan

Shareholders of International Breweries Plc have approved the company’s $379.9 million shareholder loan and debt-to-equity conversion, Nairametrics reported on April 18.

The approval was given at the Extraordinary General Meeting of International Breweries Plc held in Lagos on April 18.

According to the company’s notice to the Nigerian Exchange Limited and investing public on the outcome of the EGM seen by Nairametrics, shareholders accepted and approved the $379.9 million convertible loan from AB InBev Nigeria Holdings BV for the repayment of a loan from Citibank Abu Dhabi, subject to management’s terms.

The statement signed by Dr. (Mrs) Marian Reginald-Ukwuoma, Company Secretary/Legal Counsel, noted that the following resolutions were proposed and duly passed by the shareholders:

• “That the convertible loan of US$379.9million from AB InBev Nigeria Holdings BV (‘Shareholder Loan”) in respect of the repayment of the loan obtained by the Company from Citibank Abu Dhabi is hereby accepted and approved in accordance with the terms and conditions presented by the Management of the Company.
• Subject to complying with applicable regulatory requirements, the Directors are authorized to apply all sums due from the Company to AB InBev Nigeria Holdings BV under the Shareholders Loan, towards payment for any shares subscribed for by AB InBev Nigeria Holdings BV in the company’s Right Issue that has been approved by the Shareholders of the Company.
• That a Director and the Company Secretary are authorized to sign and execute all documents necessary to appoint such parties and advisers, and all other documents, as may be necessary to give effect to the above resolutions including without limitation to comply with the directives of any regulatory authority”.

Nairametrics recently reported that 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.

This was contained in the company’s notice of EGM slated for April 9, 2024, in Lagos.

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.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .