Nigerian Breweries (NB) Plc has allotted and listed a total of 78.93 million ordinary shares of 50 kobo each to shareholders of the company who elected to convert their cash dividends to ordinary shares.
The listing of the new shares on the Nigerian Exchange (NGX) increased the total issued and fully paid up shares of Nigerian Breweries from 7.997 billion to 8.076 billion ordinary shares of 50 kobo each.
The board of directors of NB had recommended the adoption of a dividend conversion option under which shareholders can exchange their cash dividends for ordinary shares of the brewing company.
The directors of the company then sought shareholders’ approval for the implementation of the conversion scheme, which applied to the cash dividend for the 2020 business year.
According to the resolutions, shareholders authorised that “shareholders entitled to receive cash dividends in respect of the financial year ended December 31, 2020, be offered a right of election to receive ordinary shares in the company instead of cash dividends, and that such new ordinary shares be credited as fully paid, which, when issued, shall rank pari-passu in all respects with the company’s existing ordinary shares”.
Shareholders authorised the directors “to allot to shareholders who elected to receive ordinary shares in the company in lieu of cash dividends, such number of new ordinary shares as shall be determined by the directors” in line with the reference conversion price and amount of cash dividend presented.
The board of directors of NB had earmarked the entire net profit of N7.5 billion recorded in 2020 for payout to shareholders as cash dividends for the business year.
The company paid a final dividend of N5.52 billion in addition to an interim dividend of N1.999 billion earlier paid during the business year. With these, shareholders received a final dividend per share of 69 kobo in addition to 25 kobo earlier paid during the year, bringing the total dividend per share to 94 kobo.