International Breweries Plc says shareholders would be asked to approve the conversion of an intercompany loan of $379.9 million to equity at the brewer’s extraordinary general meeting on April 9..READ FULL ARTICLE HERE>>>>>
A debt-to-equity is a refinancing deal in which a debt holder gets an equity position in exchange for the cancellation of the debt.
Marian Reginald-Ukwuoma, the company’ secretary, announced in a statement filed on the Nigerian Exchange Limited (NGX) on Monday.
The loan was granted by AB InBEV Nigeria Holdings, the majority shareholder of International Breweries.
AB InBEV Nigeria is a subsidiary of Anheuser-Busch InBev (AB InBev) — a multinational drink and brewing giant based in Leuven, Belgium.
The company said the board would request 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 (International Breweries) from Citibank Abu Dhabi be and is hereby approved in accordance with the terms and conditions presented by the Board of Directors“.
Shareholders would also consider, and if thought fit, approve authorisation of the directors to apply any convertible loan, shareholder loan or any other loan amount/facility due to any person from International Breweries 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.
International Breweries said the a will be subject to compliance with the applicable regulatory requirements.
A rights issue is the issuance of shares offered at a discounted price by a company to its existing shareholders.
Also, International Breweries said the board would also seek approvals for directors to have authorisation to approve, sign and/or execute all documents, appoint such parties and advisers as may be necessary to give effect to the proposed debt-to-equity, including without limitation, complying with the directives of any regulatory authority.
Similarly, Cadbury Nigeria’s shareholders, on February 24, approved the conversion of an outstanding intercompany loan of N7.03 billion ($7.71 million) owed to its principal shareholder, Cadbury Schweppes Overseas Limited, to equity.
Cadbury Nigeria said it would allot 402,082,657 ordinary shares of 50 kobo each to Cadbury Schweppes Overseas in place of the debt..READ FULL ARTICLE HERE>>>>>
