Unilever, Advisers Sign Pact on N58.9bn Rights Issue

Unilever, Advisers Sign Pact on N58.9bn Rights Issue

Unilever, Advisers Sign Pact on N58.9bn Rights Issue

Financial advisers, other parties to the N58.851 billion Rights Issue of Unilever Nigeria Plc and directors of the company have held a signing ceremony for a successful issue. This followed the receipt of clearance documents from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) in respect of the Rights Issue.

Unilever Nigeria wants to raise N58.851 billion by way of rights to existing shareholders on the basis of 14 new shares for every 27 shares held by shareholders at an issue price of N30 per share.

Speaking at the signing ceremony, the ManagingDirector of Unilever Nigeria, Mr. Yaw Nsarkoh said: “Through this Rights Issue, we will be able to reinforce our financial flexibility to support our growth initiative and also give shareholders an opportunity to consolidate their shareholding position. The proceeds of the Rights Issue will be used to repay our outstanding foreign currency denominated liabilities, purchase additional raw materials required for our products and to meet other working capital requirements in other to build long term value for all stakeholders.”

Also, the Chairman, Unilever Nigeria, His Royal Majesty Nnaemeka Achebe, the Obi of Onitsha commented: “The Rights Issue reiterates our confidence in Unilever Nigeria’s robust future and commitment to building a more enduring business in the Nigerian market. We acknowledge with deep appreciation the unwavering support we have received from our stakeholders and shareholders even in trying times which has enabled us deliver positive result. We implore you to participate in the Rights Issues as you will be re-confirming your support for the Company.”

According to him, Unilever Nigeria remains committed to purpose driven growth underpinned by the ‘Unilever Sustainable Living Plan’ which is the blueprint for achieving their vision to make sustainable living commonplace and grow its business.

On his part, the Chief Executive of Stanbic IBTC Capital Limited, Funso Akere, commended the management of Unilever Nigeria for the commitment they have shown towards executing the rights issue and for giving Stanbic IBTC Capital a free hand to guide the process. Stanbic IBTC Capital Limited is acting as the issuing house for the rights issue.

Unilever last week reported a revenue of N45.105 billion for the half year ended June 30, 2017, showing an increase of 39 per cent from N32.278 billion in the corresponding period of 2016. Profit after tax rose by 236 per cent from N1.093 billion to N3.676 billion in 2017.

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