International Breweries is firming up plans to clear the heap of losses that have accumulated over the past years, which have kept retained earnings negative since 2019.
The core of the strategy is a share capital reduction, which the beer maker hopes to implement after securing shareholders’ approval at its forthcoming annual general meeting, as disclosed in a statement on Thursday.
“The company is proposing to reconstruct the company’s share capital by way of 1) eliminating negative retained earnings; and 2) the return of excess capital,” International Breweries stated in a note to the Nigerian Exchange.
“The transaction will be executed pursuant to the provisions of Section 131 of the Companies and Allied Matters Act, 2020 (as amended), subject to the appropriate regulatory approval and confirmation by the Federal High Court,” it added.
Shares in the brewer accelerated by 10 per cent, the maximum daily gain allowed by the bourse, at market close following the announcement.
