International Breweries Seeks Shareholders Approval to Convert $379.9m to Equity

International Breweries Plc has will at an Extra-ordinary General Meeting (EGM) to take place on April 9, 2024 seek approval of it shareholders to convert an intercompany loan of $379.9 million to equity.

A debt-to-equity is a refinancing deal in which a debt holder gets an equity position in exchange for the cancellation of the debt.

This notice was announced in a Notice Of Extra-Ordinary General Meeting filed to the Nigerian Exchange Limited (NGX) on Monday by the company’ secretary Marian Reginald-Ukwuoma The loan was granted by AB InBEV Nigeria Holdings, the majority shareholder of International Breweries.

AB InBEV Nigeria is a subsidiary of Anheuser-Busch InBev (AB InBev) — a multinational drink and brewing giant based in Leuven, Belgium.

The company said the board would request that “the loan of US$379.9 million granted to International Breweries Plc by AB InBEV Nigeria Holdings BV (‘the Shareholder Loan”) in respect of the repayment of the loan obtained by the Company (International Breweries) from Citibank Abu Dhabi be and is hereby approved in accordance with the terms and conditions presented by the Board of Directors “.