Guinness Ghana has launched a GHS 180 million renounceable rights issue to retire part of its debt to optimise its capital structure and to improve its financial and operational flexibility.
The objective of the transaction is to return Ghana’s leading total beverage company to an optimal capital structure, reduce the interest burden on GGBL, provide GGBL with the financial flexibility to invest in future value creating opportunities and return GGBL to a position where it can pay dividends.
Following the Rights Issue of GHS 70,000,000 in November 2011, the Company successfully reduced its outstanding net debt from GHS 104,907,000 as at June 2011 to GHS 5,626,000 as at June 2012.However, over the past 3 years, the GGBL has invested significantly in capital expenditure including increasing the capacity of the Kumasi brewery, to install spirits blending and bottling capability and to redesign the Malta Guinness bottle. These operational initiatives have been funded primarily by debt.
Francis Agbonlahor, Managing Director of GGBL said “The macroeconomic backdrop has increased the burden of the debt financing with market interest rates having increased significantly, as well as putting pressure on the operating performance of the business.
He said Guinness Ghana is confident the injection of GHC180m will give shareholders the opportunity to contribute to GGBL's future while enabling the Company to reduce its debt levels, increase its profitability and enable us maintain the leading position in Ghana.
The Offer is open from 6th May 2016 until 3:00pm on 31st May 2016. IC Securities (Ghana) Limited is acting as the Financial Advisor and Sponsoring Broker to GGBL in respect of the Offer and can address any technical questions regarding the Rights Issue process.
Latest Stories
-
GPL: Expect a new Kotoko against Samartex – Ogum tells fans
41 mins -
Court orders service of notice for DNA test to Mohbad’s wife
42 mins -
Changes to Ghana’s oil and gas royalty and licensing scheme to be implemented in 2024
45 mins -
Ghana’s oil production to rebound in 2024 growing by 5% – Fitch Solutions
1 hour -
Davido gifts fan $50K to clear off her student loan
1 hour -
Netflix: Profits soar after password sharing crackdown
1 hour -
OSP files additional charges against former PPA CEO Adjenim Boateng Adjei
1 hour -
Samuel Anini’s ‘Legacy of Hope’ to be launched in Finland
1 hour -
Fitch Solutions projects 19.0% average inflation for Ghana in 2024
1 hour -
Beijing half marathon: Top 3 stripped of medals after investigation
1 hour -
Nigerian Tunde Onakoya attempts to break chess marathon record
1 hour -
Government set to strip ECG of its billing, collection powers – Egyapa Mercer
2 hours -
We have to focus on Premier League now – Jurgen Klopp
2 hours -
Oil price rises as US says Israel has struck Iran
2 hours -
MPs open up about growing financial pressures and health challenges
2 hours