By Bamidele Famoofo
WorldStage— To be able to return to payment of dividend to its shareholders and reduce the heavy burden of accumulated losses that has risen to above N191billion in recent times, International Breweries Plc, one of Nigeria’s leading brewers, said it will shrink its share capital.
International Breweries Plc is part of Anheuser-Busch InBev (AB InBev), the world’s largest brewer with over 500 brands.
Other major reasons behind the share construction move by the company are to eliminate negative retained earnings and return of excess capital.
The proposal has been communicated to the Nigerian Exchange Limited, shareholders and stakeholders of the company.
According to Temitope Oluwatosin, Company Secretary/General Counsel of International Breweries Plc, the transaction will be executed pursuant to the provisions of the Section 131 of the Companies and Allied Matters Act, 2020 (as amended), subject to the appropriate regulatory approval and confirmation by the Federal High Court.
Despite the return to profitability, International Breweries remains unable to distribute dividends due to accumulated losses of ₦191,032,749,000 (as at FY 2025).
“The Company proposes to apply a portion of the balance in the Share Premium Account to eliminate the accumulated losses. Thereby restoring distributable reserves and re-establishing the Company’s capacity to pay dividends from future profits,” Oluwatosin disclosed in a statement.
Following the elimination of accumulated losses, the Company proposes a further reduction of the Share Premium Account, to enable the return of capital to shareholders. The amount payable per ordinary share will be distributed on a pro rata basis, determined with reference to the total amount approved by the Board of Directors for distribution from the Share Premium Account.
Shareholders of the Company will be required to vote on the proposed share capital reduction at the forthcoming Annual General Meeting.
