Netherlands-based Heineken N.V has indicated a firm commitment to invest at least N342 billion in additional equity funding in its Nigerian subsidiary and Nigeria’s largest brewer, Nigerian Breweries Plc. The new investment could reach about N400 billion based on standby commitment and prior interest by the multinational. Plc, Mr Sijbe Hiemstra, said the multinational is ready to provide an initial commitment of up to N342 billion in new equity injection into the Nigerian subsidiary.
Also, the Board was mandated to offer shares not taken up by shareholders within the period stipulated under the rights issue to other shareholders of the company that have indicated interest in purchasing additional shares not taken up by the shareholders entitled to do so in the rights Issue, on such terms and conditions as may be determined by the directors, subject to complying with relevant regulatory requirements.
He said the balance sheet restructuring would lead to the elimination of the naira devaluation risk or foreign exchange losses as well as the reduction of huge interest burden on the company. A breakdown of the company’s audited results for the 2023 financial year showed that revenue rose by nine per cent while operating profit declined by 15 per cent from N53 billion in 2022 to N45 billion in 2023 due to higher input costs and one-off reorganization costs despite the strong and aggressive cost savings and other efficiency measures.
According to him, Nigeria and Netherlands must explore more creative channels of collaboration, through partnerships, joint ventures, or strategic alliances to build bridges that connect markets and facilitate the flow of goods, services, ideas and peoples.