Unilever Nigeria to raise N59bn in new shares sale

Unilever Nigeria to raise N59bn in new shares sale

Unilever Nigeria Plc on Wednesday filed application with the Nigerian capital market authorities to raise about N58.86 billion by selling new ordinary shares to existing shareholders.

An application filed at the Nigerian Stock Exchange (NSE) indicated that Unilever Nigeria will sell 1.962 billion ordinary shares of 50 kobo each at a price of N30 per share to existing shareholders through a process known as rights issue.

The qualification date for the rights issue was the close of business on Wednesday June 28, 2017 while the shares will be pre-allotted to shareholders in the register of the company on the basis of 14 new ordinary shares for every 27 ordinary shares held.

Shareholders of Unilever Nigeria had at the annual general meeting in Lagos approved a proposal by the board of the company to raise up to N63 billion in new equity funds by selling new shares to existing shareholders.

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In preparation for the rights issue, shareholders also increased the authorised share capital of the company to N5 billion or 10 billion shares through the creation of additional 3.95 billion ordinary shares of 50 kobo each.

Unilever Plc, United Kingdom, the majority core investor in Unilever Nigeria, is expected to provide about N35.4 billion in the capital raising. Unilever UK holds 60.06 per cent majority equity stake in Unilever Nigeria through its Unilever Overseas Holdings BV.

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