Unilever Nigeria calls shareholder vote over sale of spreads business

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LAGOS, May 10 – Unilever Nigeria plans to hold shareholder meeting on May 10 to vote on the proposed sale of its Blue Band margarine business, the company said on Thursday.

The brand, made and distributed by Unilever Nigeria in the west African country, is being sold by parent Unilever as part of the 6.8 billion euro ($8.1 billion) sale of its Flora Food Group spreads arm to private equity firm KKR .

Flora Food Group, Unilever’s (UNc.AS) (ULVR.L) spreads business is set to allocate a €4.7bn-equivalent leveraged loan buyout financing after attracting around 80 major investors into the jumbo cross-border deal, banking sources said.

The company managed to raise €2.8bn-equivalent from European investors, comprising a £700m tranche and a €2bn tranche, the largest single-tranche euro-denominated term loan B since the financial crisis.

Last minute changes saw a dollar tranche increase by €100m-equivalent to US$875m, partly at the expense of unsecured bonds. At the same time, pricing on the dollars tightened to 300bp over Libor, at 99.875 OID from launch guidance of 325bp over Libor at 99.5 OID.

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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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