UNILEVER Nigeria Plc is
planning to commit N35 billion
out of its N58.9 billion rights
issue to foreign denominated
debts repayment.
The company at its facts
behind the issue held at the
Nigerian Stock Exchange
explained that N11.8 billion
will be used for the purchase
of raw materials while
N7.4 billion to shore up the
company’s working capital.
Unilever’s MD Mr. Yaw
Nsarkoh who led his
management team to present the
facts behind the issue disclosed
that the rights issue will deepen
capital resources to exploit value
accretive opportunities whilst
giving Unilever Nigeria greater
financial flexibility.
A summary of the issue which
opened on Monday July 31 and
is scheduled to close on Friday
8th September put the issue price
at N30, a 22 per cent discount to
market price as at opening date
of 31 July 2017.
The rights is allotted on the
ratio of 14 new ordinary shares
for every 27 ordinary shares held
as at the close of business on
Wednesday, 28 July, 2017.
According to Nsarkoh, the
rights issue was part of Unilever
Nigeria long term strategic to
strengthen the company’s capital
base by deleveraging its balance
sheet.
In his opening address, the CEO
of the Nigerian Stock Exchange,
Mr. Oscar Onyema congratulated
the stockbroker and other parties
to the transaction for putting
together the rights issue which
he said was a demonstration of
the strong confidence the foreign
and local investors has in the
depth of our market.
Onyema also encouraged
other companies to leverage the
opportunities that abound in
the Nigerian capital market
adding that the Exchange
provided a platform for
corporates to meet financial
objectives.
“We are particularly pleased
that Unilever has chosen to use
this platform, as the market is
driven by timely information,
your interaction with the
market through this platform
is very welcome,” he said.

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