Guinness Ghana opens GHC180m renounceable rights issue
The objective of the transaction is to return Ghana’s leading total beverage company to an optimal capital structure, reduce the interest burden on GGBL, provide GGBL with the financial flexibility to invest in future value creating opportunities and return GGBL to a position where it can pay dividends.
Following the Rights Issue of GHS 70,000,000 in November 2011, the Company successfully reduced its outstanding net debt from GHS 104,907,000 as at June 2011 to GHS 5,626,000 as at June 2012.
However, over the past 3 years, the GGBL has invested significantly in capital expenditure including increasing the capacity of the Kumasi brewery, to install spirits blending and bottling capability and to redesign the Malta Guinness bottle. These operational initiatives have been funded primarily by debt.
Francis Agbonlahor, Managing Director of GGBL said “The macroeconomic backdrop has increased the burden of the debt financing with market interest rates having increased significantly, as well as putting pressure on the operating performance of the business.
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