Unilever Nigeria’s $187m rights issue share sale oversubscribed

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LAGOS, Oct 25  – Unilever Nigeria’s 58.85 billion-naira ($187 million) rights issue was 120 percent subscribed, the company said on Wednesday.

The local subsidiary of Anglo-Dutch consumer goods group Unilever , said in a statement it sold 14 new new shares for every 27 held at 30 naira each.

The company, which is 60.05 percent owned by Unilever, said four shareholders applied for 50 million shares or more during the offer.

Unilever had said it would take up its rights under the offer to maintain its shareholding and not convert a loan made to the subsidiary into equity.

The Nigerian firm wants the proceeds of the sale to pay off around $120 million in loans and to give it some flexibility in the event of a further weakness in the naira’s exchange rate.

Unilever Nigeria’s existing shares were trading unchanged at 44.11 naira on Wednesday, up about 26 percent so far this year. ($1 = 315.0000 naira) (Reporting by Chijioke Ohuocha; Editing by Greg Mahlich)

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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