The board and management of Unilever Nigeria Plc, has unveiled that the company would been raising N58 851 275 010 billion capital through 1 961 709 167 ordinary shares being offered by way of rights issue at N30.00 per share which opened on Monday July 31,2017 at discounted of 22percent on that day.
The issue is expected to close to the offers on Friday September 8, 2017. The rights ratio of the issue stood at 14 new ordinary shares for every 27 ordinary shares held as at the close of business on Wednesday June 28, 2017 when it was made public.
Unilever Nigeria’s entire issued and paid-up capital is listed on the Nigerian Stock Exchange (The NSE) adding that the proceed for the deal will be deploy to support its working capital as well as re-position the company to exploit value accretive opportunities.
While addressing stockbroking community and financial journalist on the floor of The NSE, the Managing Director Yaw Nsarkoh, made it clear that this rights issue is part of Unilever Nigeria long term strategic intents to strengthen the company’s capital base by deleveraging its balance sheet.
Nsarkoh stated that the Rights issue would help the company achieve its 5 strategic plans and position it for future growth
Stressing that part of the proceeds will be used to repay the company outstanding foreign currency denominated liabilities, purchased additional raw materials required for its products and to meet other working capital requirements. The rights issue price is N30.00 at the ratio of 14 new ordinary shares for every 27 ordinary shares held as at the close of business on Wednesday June 28, 2017. The rights issue offer price is 22 percent discount as at the opening date of July 31, 2017.
Highlights about how the rights issue proceeds will be deployed shows that N38.502 billion will go into the payment of foreign exchange denominated obligations. The amount set aside for the purchase of raw materials stood at N11.813 billion, while N7.365 billion is for working capital. Already the parent body of Unilever Nigeria has assured that they will take up their right issue.
According to the rights issue time table, the listing of new Unilever Nigeria shares / trading will commence on November 1, 2017. A look at the company’s second quarter result for the period ended June 30, 2017 released shows that revenue grew by 40 percent while profit after tax grew by 236 percent, boosted by strong revenue performance and effective cost management initiatives.