Financial advisers, other parties to theÂ Â Â N58.851 billion Rights Issue of Unilever Nigeria Plc and directorsÂ of the companyÂ have held a signing ceremony for a successful issue. This followed theÂ receipt of clearanceÂ documents from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) in respect of the Rights Issue.
Unilever Nigeria wants to raise N58.851 billion by way of rights to existing shareholdersÂ on the basis of 14 new shares for every 27Â shares held by shareholders atÂ an issue price of N30 per share.
Speaking at the signing ceremony, the ManagingDirector of Unilever Nigeria,Â Mr. YawÂ NsarkohÂ said: â€œThrough this Rights Issue, we will be able to reinforce our financial flexibility to support our growth initiative and also give shareholders an opportunity to consolidate their shareholding position. The proceeds of the Rights Issue will be used to repay our outstanding foreign currency denominated liabilities, purchase additional raw materials required for our products and to meet other working capital requirements in other to build long term value for all stakeholders.â€
Also,Â the Chairman, Unilever Nigeria, His Royal MajestyÂ NnaemekaÂ Â Achebe, the Obi of Onitsha commented:Â â€œThe Rights Issue reiterates our confidence in Unilever Nigeriaâ€™s robust future and commitment to building a more enduring business in the Nigerian market. We acknowledge with deep appreciation the unwavering support we haveÂ received from our stakeholders and shareholders even in trying times which has enabled us deliver positive result. We implore you to participate in the Rights Issues as you will be re-confirming your support for the Company.â€
According to him, Unilever Nigeria remains committed to purpose driven growth underpinned by the â€˜Unilever Sustainable Living Planâ€™ which is the blueprint for achieving theirÂ Â vision to make sustainable living commonplace and grow its business.
On his part,Â the Chief Executive ofÂ StanbicÂ IBTC Capital Limited,Â FunsoÂ Akere, commended the management of Unilever Nigeria for the commitment they have shown towards executing the rights issue and for givingÂ StanbicÂ IBTC Capital a free hand to guide the process.Â StanbicÂ IBTC Capital Limited is acting as the issuing house for the rights issue.
Unilever last week reportedÂ Â Â aÂ revenue of N45.105 billionÂ for the half year ended June 30, 2017, showing an increase ofÂ Â Â Â 39Â per cent from N32.278 billionÂ in the corresponding period of 2016. ProfitÂ after tax rose byÂ 236 per cent fromÂ N1.093 billion to N3.676 billion in 2017.