Unilever Nigeria scales back size of $5.39 mln share sale

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LAGOS, Aug 1 – Unilever Nigeria has scaled back the amount it planned to raise from shareholders via a rights issue to 1.96 billion naira ($5.39 mln).

The household products maker, majority owned by Unilever , had planned to raise 63 billion naira through a rights issue and said in April it would ask shareholders to approve the share sale.

The company said on Tuesday it would issue 14 new shares to existing shareholders for every 27 held at 30 naira each, a 25.2 percent discount to Tuesday’s market price of 40.13 naira.

It said the rights offer, which opened on Monday, would close on Sept. 8.

Unilever Nigeria was not immediately available to comment on Tuesday.

In July, the company reported a 238 percent rise in half-year pretax profit to 5.04 billion naira.

Unilever Nigeria shares, which have gained 13.3 percent so far this year, rose 0.86 percent on the Lagos bourse on Tuesday. The stock fell 19.1 percent last year.

Nigeria, Africa’s top oil producer, last year entered its first recession in 25 years, brought on by low oil prices, which have slashed government revenues and crippled dollar supplies in the country. ($1 = 363.90 naira) (Editing by Jane Merriman)

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Godwin Okafor is a financial journalist, Internet Social Entrepreneur and the Founder Naija247news Media Ltd He has over 16 experiences in journalism, which cuts across traditional and digital media. He started his journalism career in Business Day, Where he was a senior editorial graphic artist, before he left to start Naija247news, An Online Financial Newspaper in 2010. He has won series of awards and he is the chairman of Emmerich Resources Limited, the publisher of Naija247news.com and also sits on the board of Students In Business Awards, (SIBA).

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