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Wednesday, November 22, 2017.

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Nigerian News » Politics

Guinness N40bn rights issue: Can it realise full subscription?

Guinness Nigeria Plc is a very good company, no doubt.   It is apparent that the company has not been doing well operationally over the past five years due to the economic challenges of the country.

No doubt about it, the price and market share have been shrinking and apparently some opportunity that they were suppose to optimise in the market place were not taken as at when appropriate, but all hope are not lost.

The rights they are proposing now would have been done three or four years ago when the market price was high and when probably some few shares would have earned the company all the money that is required for strategic positioning.

Well, it is better late than never.   We hope the offer would be fully subscribed given the pedigree of the company. I want to believe that it will be fully subscribed and I hope the retail shareholders will exercise their rights not minding the economic depression to boost their stake and the money raised will help the company to boost production and turnover which will eventually lead to profitability.

I want to believe that shareholders will take their rights given also the fact that this company is a blue chip and as well as produces competitive products that are very marketable.

THE Public Relations Officer, Independent Shareholders Association of Nigeria, Moses Igbrude

Guinness Nigeria Plc rights issue is what we have been advocating for the past years. So, now that the management is ready for it, though late but still better than to go to banks for credit. The company need the money to boost their business expansion. They have just completed their plants in Benin. They have good products that are very competitive.

I will appeal to shareholders to approve the rights which I believe they will do. The company has potentials not minding that they did not pay dividend last year because of the loss it recorded. Nevertheless, the market is there for them not minding the economic recession people still drink.

All they need is to re-strategise to regain their market share and make profit in order to declare dividend. This is a multinational company that investors would be proud to invest. Shareholders have confidence in the company because it is a recognised brand and have been consistent in paying dividend until this period of recession the country is facing.

A SHAREHOLDER Activist, Mr. Nonah Awoh

The N40 billion rights issue is okay. The company has not fully disclosed very well to the minority shareholders what it is owing to the foreign partners and what percentage of the shares that is likely to get them.

Even the figure they later gave I don’t believe it is correct. Abinitio, the foreign partners had wanted to increase their stake, but this should be done transparently. The rights issue if successfully raised will help the company to boost its production.

Well, nevertheless, the foreign partners can still increase their stake since an opportunity has been given to them to convert the debt to equity once the offer is approved by the regulatory authorities.

We want the management to be proactive and ensure that whatever money raised is judiciously used to take the company to the path of profitability.

The offer is likely to be fully subscribed given the fact that foreign partners can subscribe for more in the event that some existing shareholders are unable to pick their rights.

NATIONAL Co-ordinator, Proactive Shareholders Association of Nigeria, PROSAN,  Mr. Oderinde Taiwo

The N40 billion rights issue of Guinness Nigeria Plc is to the advantage of retail investors as they can afford to exercise their rights given the current price. It takes a lion heart to take a lion share as they say, because the management of the company has done its work very well as an agreement has been reached where the foreign partner is gives opportunity to convert credit to equity holding.

This will save the company from paying huge interest on the debt owed.   I think it is a good strategy and that is why we need proactive management like we have in Guinness.   I also encourage fellow retail shareholders to exercise their rights as this will be to the advantage of us and the company as well. The rights issue will help the company reposition its business and make profit.

When the company makes profit, dividend would be proposed by the Board of Directors for shareholders approval. I see the rights issue fully subscribed as management has done its home work very well.

This is a multinational company that has competitive products that can sell all over the country. It is my believe that the offer would be fully subscribed.
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