Unilever Nigeria undertakes N58.9bn Rights Issue

Following shareholder approval received in May, Unilever Nigeria Plc has now received clearance of the issue documents from the Securities and Exchange Commission and the Nigerian Stock Exchange (The NSE) in respect of the Rights Issue. The transaction is part of the Company’s strategy to drive sustained and steady growth despite economic headwinds.
The company plans to raise N58,851,275,010 by way of rights to existing shareholders, on the basis of 14 new shares for every 27 shares held by shareholders, whose names appeared in the register of members of the Company as at 28 June 2017 at an issue price of N30 per share.
At the signing ceremony which held at Unilever Nigeria’s head office in Lagos, on 13 July 2017, Yaw Nsarkoh, the Managing Director of Unilever Nigeria, commented “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.”
Chairman, Unilever Nigeria, HRM Nnaemeka A. Achebe, also commented saying “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”.
Unilever Nigeria remains committed to purpose driven growth underpinned by the “Unilever Sustainable Living Plan” which is the blueprint for achieving our vision to make sustainable living commonplace and grow its business, whilst decoupling our environmental footprint from our growth and increasing our positive social impact.
Speaking at the end of the ceremony, Funso Akere, the Chief Executive of Stanbic IBTC Capital Limited, 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 for Unilever Nigeria Plc as Issuing House for the Rights Issue.
Full terms of the Rights Issue will be set out in a Rights Circular to be mailed directly to shareholders of the Company, which contains a Provisional Allotment Letter and the Participation Form.
Please read the Rights Circular and where in doubt, consult your Stockbroker, Fund/Portfolio Manager, Accountant, Banker, Solicitor, or any other professional adviser for guidance before subscribing.
Credit: Proshare