The board of International Breweries Plc is proposing a share capital reduction exercise to enable it to pay dividends from future profits.
The brewery firm has been unable to give shareholders a cash reward despite bouncing back into profitability because of accumulated losses of up to N191 billion.
To resolve this issue, which is becoming worrisome to the company’s investors, the board is planning to apply a portion of the balance in the Share Premium Account to eliminate the accumulated losses.
In a notice signed by its scribe, Temitope Oluwatosin, International Breweries informed the Nigerian Exchange (NGX) Limited and the investing public that the share capital reduction should restore distributable reserves and re-establish its capacity to pay dividends to shareholders.
It was disclosed that the transaction would be “executed pursuant to the provisions of 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.”
“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 for distribution from the Share Premium Account,” a part of the disclosure stated.
International Breweries noted that shareholders would be required to vote on the proposed share capital reduction at the forthcoming Annual General Meeting (AGM) scheduled for the Grand Ballroom of the Federal Palace Hotel, Lagos, on Thursday, July 30, 2026, at 11.00 am.