The-Nigerian-Stock-Exchange-NSE

Unilever Nigeria on Thursday said that the proceeds of the ongoing rights issue would deepen the company’s capital to ensure financial flexibility and to repay foreign exchange liabilities.

Mr Yaw Nsarkoh,  the company’s Managing Director, said this at its facts behind issue on the Nigerian Stock Exchange (NSE) in Lagos.

Nsarkoh said that the N58.85 billion net proceeds of the offer would enable the company to exploit value creation opportunities for enhanced return on investment.

“Through this rights issue, we will be able to reinforce our financial flexibility to support our growth initiative, while giving shareholders an opportunity to consolidate their shareholding position,’’ he said.

Nsarkoh stated that the rights issue was part of the company’s long-term strategic intent to strengthen capital base by deleveraging its balance sheet.

He added that the offer would strengthen the company’s working capital needs and position it to exploit value accretive opportunities.

Also speaking, His Royal Majesty Nnaemeka Achebe,  the company’s  Chairman, described the rights issue as a milestone in Unilever Nigeria’s history as it marked the first follow-on equity offering since listing in 1973.

Achebe said that the rights issue reiterated confidence in Unilever Nigeria’s robust future and commitment to building a more enduring business in Nigeria.

“We acknowledge with deep appreciation the unwavering support we have received from our stakeholders and shareholders even in trying times which has enabled us deliver positive results.

“We urge all shareholders to support the company’s objective by participating in the rights issue to ensure the company obtains the flexibility to attain its growth objectives,’’ Achebe said.

The News Agency of Nigeria (NAN) reports that Unilever is presently raising N58.85 billion through a rights issue at the rate of 14 shares for every 27 shares at N30 per share.

The offer which opened on July 31 would close on Sept. 8, 2017.

Earlier, Mr Oscar Onyema, NSE Chief Executive Officer, noted that Unilever had chosen to use its  platform to further inform the market on the on-going transaction and other strategy and operational development in the company.

Onyema said that the company had indicated in NSE filling that funds raised from this offer would be used to repay their foreign currency denominated obligation, purchase additional raw materials and finance its working capital.

He stated that the offer demonstrate the strong confidence the issuer had on the depth of the capital market.

Onyema added that the issue demonstrated the confidence both domestic and foreign investors had in Nigeria’s economy and the capital market in general.

(NAN)