Unilever to deepen capital resources with off er proceeds

Unilever Nigeria Plc, has said that the fund raised from right issue will help the company deepen capital resources to exploit value accretive opportunities while giving the company greater fi nancial fl exibility. Unilever is currently raising N58.85 billion through a rights issue at the rate of 14 shares for every 27 shares held as at June 28 2017 with an off er price of N30 per share.
Th e off er which opened on July 31 will close on September 8, 2017. Stating the reasons for the rights issue, Unilever explained that the net proceeds will help the company repay outstanding foreign currency denominated liabilities, purchase additional raw materials required for Unilever’s products and to meet other working capital requirements in order to build long term value for all stakeholders.

Th e shareholders of the Company had approved the rights issue at the 92nd Annual General Meeting held in May, 2017. Speaking at the company’s fact behind the issue on the Nigerian Stock Exchnage (NSE), the managing director, Unilever Nigeria Plc, Yaw Nsarkoh said, “Th rough this rights issue, we will be able to reinforce our fi nancial fl exibility to support our growth initiative, while giving shareholders an opportunity to consolidate their shareholding position.

“Th e Rights Issue is part of Unilever Nigeria’s long term strategic intent to strengthen the company’s capital base by deleveraging its balance sheet, support its working capital needs and position the company to exploit value accretive opportunities.” Also, the chairman, Unilever Nigeria Plc, His Royal Majesty Nnaemeka Achebe, stated that the Rights Issue represents a milestone event in Unilever Nigeria’s history as it marks the company’s fi rst followon equity off ering since its listing in 1973.

According to Achebe, the rights issue reiterates our confi dence in Unilever Nigeria’s robust future and commitment to building a more enduring business in Nigeria. 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 results. We urge all shareholders to support the company’s objective by participating in the rights issue to ensure the company obtains the fl exibility to attain its growth objectives.

 

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