Unilever to buy more shares in Unilever Nigeria rights issue

Conoil

As a follow up to the share sale announced by Unilever Nigeria, Unilever plc, listed on the London Stock Exchange said it will be subscribing to the share sale.

The London-based company is a majority stake owner in the Nigerian unit.

Unilever Nigeria had announced that it plans to raise NGN58.85 billion, approximately USD162 million to offset loans and avoid currency losses in case the Naira (NGN) is further devalued.

Unilever already owns about 60.2% of the local unit. The company’s support was pivotal to the survival of its local unit when it loaned it USD108 million to clear Forex payables for raw material imports after Nigeria’s recession led to an unprecedented Forex drought.

As part of the rights issue, 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.

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