Unilever Nigeria floats N58.9 billion rights issue
Following shareholders approval received in May, Unilever Nigeria Plc, has announced that it has received regulatory clearance for the issue documents from the Securities and Exchange Commission (SEC), and the Nigerian Stock Exchange (NSE), in respect of a Rights Issue.
The company plans to raise over N58.85billion 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 its head office in Lagos, the Managing Director of Unilever Nigeria, Yaw Nsarkoh, said the transaction is part of the company’s strategy to drive sustained and steady growth despite economic headwinds.
“Through 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,” he said.
According to him, the proceeds of the rights issue will be used to repay outstanding foreign currency denominated liabilities, purchase additional raw materials required for its products, and meet other working capital requirements in order to build long term value for all stakeholders.
The Chairman, Unilever Nigeria, Nnaemeka A. Achebe, noted that the rights issue underscores the confidence in Unilever Nigeria’s robust future and commitment to building a more enduring business in the Nigerian market.
He said: “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.”
He added that full terms of the rights issue would be set out in the rights circular to be mailed directly to shareholders of the Company, which contains a Provisional Allotment Letter and the Participation Form.
The Chief Executive, 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 for Unilever Nigeria Plc as Issuing House for the Rights Issue.