Unilever Nigeria Applies for N60billion Rights Issue

Fast Moving Consumer Goods Company, Unilever Nigeria Plc has sent an application to the Nigerian Stock Exchange, NSE, indicating its plan to raise approximately N60 billion from the capital market through rights issue

“Unilever has through its stock broker, Stanbic IBTC Stockbrokers Limited, submitted an application to the Exchange for approval and listing of a rights issue,” the NSE acting head, Listings Regulation Department God’stime Iwenekha said in a market bulletin dated Wednesday, June 28. According to the document, the rights issue of 1,961,709,167 Ordinary Shares of 50 Kobo each at N30.00 per share will be issued to shareholders who were on the company’s register as at close of business on Wednesday, June 28, on the basis of 14 new ordinary shares for every 27 ordinary shares held.

Unilever sought and received shareholders’ approval to raise up to N63 billion from the capital market in May during its 92nd Annual General Meeting (AGM) held in Lagos. The shareholders also increased the authorised share capital of the company to N5billion through the creation of additional 3.95 billion ordinary shares of 50 kobo each in preparation for the rights issue. The rights issue, expected to deleverage the company’s balance sheet and increase working capital for the business will see Unilever Overseas providing about N35.4 billion in the capital raising.

Unilever Plc, United Kingdom, is the majority core investor in Unilever Nigeria, which holds 60 percent equity stake, through its Unilever Overseas Holdings BV.