[Stockbear]

To the gurus in the house, what's your take on Champion Breweries?

The Punch
Champion Breweries to recapitalise
By Goddy Egene
Published: Thursday, 26 Apr 2007

Strong indications have emerged that Champion Breweries Plc will soon access the capital market for funds via a Rights Issues.

Capital market sources hinted that the planned recapitalisation would enable the management improve on the company’s dwindling financial performance and its inability to pay dividend to its shareholders for sometime.

Champion Breweries, which returned to profitability in 2001 after a restructuring of debt owed to Akwa Ibom State Government, among others, was posting record operational performance, until recently when its performance began to decline.

However, in order to improve its performance, the company is to issue 1.5billion ordinary shares of 50 kobo limited to shareholders whose names appeared in the registers of members as at July 28, 2006, at a yet to be to be determined price. The stock sold for N13.31 per share on Wednesday.

http://www.punchontheweb.com/Articl....07042522365115