Lagos — Guinness Nigeria said on Monday it was seeking shareholder approval to raise 40-billion naira ($127m) with a rights issue of shares to strengthen its balance sheet following recent losses. The company, which is 54% owned by Diageo, reported in September last year it made a pretax loss of 2.35-billion naira in the year ended June 30, its first annual loss in 30 years. Africa’s biggest economy is in recession brought on by low oil prices, which have slashed government revenues and crippled dollar supplies in the country, frustrating businesses. In October last year the company reported it made a further pretax loss of 2.21-billion naira in the quarter ending September 30, compared with a profit of 517.6-million naira in the same period of 2015. Shareholders will vote on the share sale on January 24. The shares, which have fallen 19% this month, rose 2.2% to 68.70 naira on the Lagos bourse on Monday following news of the rights issue. "Guinness Nigeria Plc believes the rights i...
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