Bloomberg News

Guinness Ghana Gets Approval for 70 Million-Cedi Share Sale

September 12, 2011

(Updates with offer details from first paragraph.)

Sept. 12 (Bloomberg) -- Diageo Plc’s Ghanaian unit received approval from the West African nation’s capital market regulator to raise 70 million cedis ($45 million) by selling stock to shareholders to pay debt and invest in infrastructure.

Guinness Ghana Breweries Ltd. obtained consent from the Securities and Exchange Commission and the Ghana Stock Exchange for the offer, the company said in a statement published in the Accra-based Business and Financial Times newspaper today. Shareholders first approved the offer on June 14.

The offer runs from Oct. 17 to Nov. 14, and will sell about 46.7 million shares at 1.5 cedis each, it said.

“Proceeds from the offer will enable Guinness Ghana to reduce its trade and interest-bearing debt and allow the company to continue to invest in capital projects to take advantage of growth opportunities in Ghana,” it said.

Guinness, which makes the stout beer in the West African nation along with Star lager and other beverages, will spend 40 million cedis to pay down debt, Chairman David Harlock said on June 14. Another 29 million cedis will be invested in infrastructure, water supply and electricity at the company’s plants, he said.

Guinness Ghana shares were unchanged at 1.57 cedis as of 11:41 a.m. in Accra, the capital.

--Editors: Ana Monteiro, Ben Holland

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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