Unilever Nigeria Plc, a personal care and fast moving consumer goods maker said it will sell shares worth USD162 million to raise more capital for its operations.
Using real Forex rate, the company seeks to raise about NGN58.8 billion by selling 1,96 billion new shares. The offer is planned to close by the 8th of September, 2017.
Interested shareholders will get 14 new shares to existing shares for every 27 held at NGN30 each, a 25.2% discount to Tuesday’s (yesterday) market price of NGN40.13.
Unilever Nigeria is majorly owned by Unilever plc listed on the London Stock Exchange. Last year, the company’s shares took a hit after Nigeria’s economy entered a recession, sales plummeted and its cost rose beyond expectations.
Last year, the company’s stock fell by 19%. As a result of a falling inflation rate and ease in the Forex market, the company’s revenue has risen with its EBITDA for the second quarter rising by 238% year on year.
Unilever Nigeria has not commented on what it will use the money raised for. However, it is expected that the company will be investing in new products and improving its marketing spread for newer products in its personal care range.
In the early part of the second quarter, the company announced that it will sell its spreads (butter and margarine) business as a result of a strategic review of its units.
Unilever said in the announcement that “The company has not disclosed the preferred buyer of the business”.
Should it go ahead with the sales, the company will be having only its savoury, personal care and detergent business. NO update has been given till date on the proposed sale.