Bloomberg News

Guinness Ghana Shareholders Approve Rights Offer to Pay Debt

June 14, 2011

(Updates with comment from Harlock in first paragraph.)

June 14 (Bloomberg) -- Shareholders in Diageo Plc’s Ghanaian unit approved a rights offer to raise 70 million cedis ($46.2 million) to pay debt and invest in infrastructure, said David Harlock, the company’s chairman.

The price and number of shares in the offer, which is open to existing Guinness Ghana Breweries Ltd. investors, will be given when the offer starts in early September, Harlock said at a shareholders’ meeting in Accra, the capital, today. It will close in October, he said.

Guinness, which makes the popular stout in the West African nation along with Star lager and over beverages, will spend 40 million cedis to pay down debt stock, which stood at 70 million cedis in the nine months to March, said Harlock. Another 29 million cedis will be spent on infrastructure, water supply and electricity at the company’s plants, he said.

Guinness Ghana’s shares rose 1 pesewa, or 0.8 percent, to 1.31 cedis by 2:40 p.m. in Accra.

--Editors: Emily Bowers, Karl Maier.

To contact the reporter on this story: Moses Mozart Dzawu in Accra at mdzawu@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.


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