Guinness Nigeria N39.7 Billion Rights Issue closes on 31 August 2017

August 16, 2017/Cordros Research

Guinness Nigeria Plc’s (GUINNESS) Rights Issue, opened on 24 July, 2017, will close on Wednesday, 30 August 2017. The Rights Issue is being undertaken to enable GUINNESS optimize its capital structure by repaying its various outstanding loan obligations, thereby reducing financing costs.

Details of the Rights:

Being Issued –                     684,494,631 Ordinary Shares of 50 kobo each

Rights Price –                      N58.00 per share

Gross Issue Proceeds –      N39,700,688,598

Provisional Allotment –       5 new Ordinary Shares for every 11 Ordinary Shares of 50 kobo each held as at the close of business on 15 March 2017

Worthy of Note:

 (1) The Rights is offered at 35.5% discount to the stock’s current market price of N89.89,

(2) Our most recent research report values the company’s stock at N80.02, the Rights inclusive, and

(3) The theoretical market price of the stock after the Rights is estimated at N79.50.

In all three cases above, upside potential on the Rights price ranges between 37% and 55%.

Shareholders who do not wish to take up their Rights should take a cue from the wide upside potential in trading their Rights to interested investors.

How to Participate in the Rights:

(1)    For existing qualified shareholders

  • Complete the rights issue form indicating full acceptance, partial acceptance or requesting additional rights
  • Make payment for the total rights taken (either cheque or bank transfer) either directly to the Registrars or preferably through the stockbroker
  • Submit the completed the rights issue form and all evidence(s) of payments to the receiving agent for onward submission

 (2)    For potential investors

  • Complete share transfer form
  • Make payments for agreed traded rights
  • Submit transfer form and evidence of payment to receiving agents