GGBL 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.

  • Published:
Guinness Ghana Breweries Limited play

Francis Agbonlahor, MD – GGBL, Stephen Nirenstein, Finance Director, Board Members of GGBL and MD of the GSE

24/7 Live - Subscribe to the Pulse Newsletter!

Guinness Ghana has launched a GHS 180 million renounceable rights issue to retire part of its debt to optimise its capital structure and to improve its financial and operational flexibility.

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.

READ MORE: Star Beer and Star Lite win international quality award

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. 

 

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Salaries In 2018 Here are the dates public workers will be paid in 2018bullet
2 Street Lights In Ghana ECG is not responsible for your street lights –...bullet
3 Menzgold Ghana Investment company closes down its Gold Vault Marketbullet
4 Black Stars Nana Aba comes under attack over Black Stars captaincy...bullet
5 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions...bullet
6 Taxes In Ghana 3% VAT flat rate takes off in July 1bullet
7 Petroleum Prices Gov't to reduce fuel prices by 4% after 28%...bullet
8 Retirement How to calculate your SSNIT pensionbullet
9 Ponzi Scheme Two MMM officials arrestedbullet
10 Chattered Accountants Forum ACCA holds forum on...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Money Alert Meet Africa's richest womanbullet
3 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
4 Tech 6 reasons you should buy an iPhone SE instead of any of the...bullet
5 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
6 Entrepreneurship How to be resourceful as an entrepreneurbullet
7 Plane Crash Starbow suspends operations following plane crashbullet
8 Entrepreneurship Creating Success Systems | StartUpSchoolbullet
9 Support Finance minister buys Kantanka carbullet
10 Entrepreneurship Failure- How To Deal With It |...bullet

Business