International Breweries Proposes Capital Overhaul to Offset Loss

International Breweries Plc, a prominent player in Nigeria's beverage sector and a member of the AB InBev Group, has announced a proposal to reorganize its share capital to eliminate an accumulated loss of N191.03 billion. This strategic move aims to pave the way for the company to return to dividend distribution, as outlined in a corporate notice sent to the Nigerian Exchange.

Despite a recent return to profitability, the company remains unable to reward shareholders due to significant negative retained earnings on its balance sheet. The plan involves deploying a portion of its share premium account to absorb the accumulated loss, which will restore its distributable reserves and enable future dividend payments.

The board clarified that this reorganization will not reduce the total number of issued shares held by investors. However, the capital shakeup is subject to regulatory approval and formal confirmation from the Federal High Court, with a crucial vote expected at the upcoming annual general meeting.

Temitop Oluwatosin Brewer, the company secretary and general counsel, noted that detailed explanatory notes will be distributed to shareholders ahead of the AGM.