(Ecofin Agency) - After reporting a pretax loss of $6.7 million last year, its first annual loss in 30 years, Guinness Nigeria is looking towards share sale to raise $126 million from existing shareholders.

“Our expectation is that funds raised will help mitigate the impact of increasing finance costs, optimize our balance sheet and improve the company's financial flexibility,” Peter Ndegwa, Chief Executive of Guinness Nigeria, said in a statement.

The local division of the world’s leading spirit maker, Diageo, plans to issue five new shares to shareholders for every 11 held at N58 each. The beer maker said it has received clearance for the sale from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE). This came after shareholders’ approval in January.

Last year, Guinness obtained the rights to distribute Johnnie Walker whisky and Baileys liqueur in Nigeria. It also commissioned a $13.5 million production line to produce spirits locally.

Anita Fatunji