Bloomberg News

Guinness Ghana Raises 70 Million Cedis, Offer Oversubscribed

November 29, 2011

(Adds details from first paragraph.)

Nov. 29 (Bloomberg) -- Guinness Ghana Breweries Ltd., the maker of drinks such as the stout of the same name and Star lager, obtained all of the 70 million cedis ($42 million) it sought in a rights offer, raising cash to cut debt and invest in infrastructure.

The offer, which ran from Oct. 17 to Nov. 14, was oversubscribed by 45 percent, the Accra-based unit of Diageo Plc said in an e-mailed statement today.

Guinness Ghana will spend 40 million cedis to pay down debt, Chairman David Harlock said on June 14. Another 29 million cedis will be invested in water supply and electricity at the company’s plants, he said.

The company reported fiscal first-quarter net income of 3 million cedis, compared with a loss of 6 million cedis in the same period a year earlier. Revenue in the three months to Sept. 30 rose 21 percent to 57.5 million cedis, it said in a statement e-mailed by the Ghana Stock Exchange on Oct. 26.

The stock was unchanged at 1.51 cedis by 2:23 p.m. in Accra.

--Editors: Emily Bowers, Antony Sguazzin

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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