(Ecofin Agency) - Guinness Nigeria says it has started receiving subscriptions for its N39.70 billion ($126 mln) share sale to existing shareholders. This is expected to end in five weeks.

It should be recalled that last month, the company announced that it is looking towards share sale to raise $126 million from existing shareholders to mitigate the impact of increasing finance costs, optimize our balance sheet and improve the company's financial flexibility. This is coming after the beer maker in September 2016, reported its first annual loss in 30 years.

In a statement on Monday, the company explained that shareholders can buy five new shares for every 11 held, at N58 naira, before the offer closes on August 30.

According to Guinness Nigeria, investors willing to participate in the offer, can do so by acquiring rights of existing shareholders who are unable to subscribe through the stock market.

The Nigeria Stock Exchange-listed company is a leader in the production and marketing of alcoholic beverages in the country. The group’s products consist mainly of spirits, vodkas, beers and malted drinks. 97.6% of its turnover is realized in Nigeria.

Anita Fatunji