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 today 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.