The Unilever Nigeria Plc N58 billion right issue which is targeted at the company existing shareholders ends today Friday September 8, 2017. According to the managing director of the company Yaw Nsarkoh, the proceed of the offer will be used to support working capital as well as re-position the company to exploit value accretive opportunities.
He noted that the right issue is part of the company long term strategic intents to strengthen its capital base by deleveraging its balance sheet. According to him “part of the proceeds will be used to repay the company outstanding foreign currency denominated liabilities, purchased additional raw materials required for our products and to meet other working capital requirements”.
The right issue price is N30.00 at the ratio of 14 new ordinary shares for every 27 ordinary shares held as at the close of business on Wednesday June 28, 2017. The right issue offer price is 22 percent discount as at the opening date of July 31, 2017.
Further breakdown of how the right issue proceeds will be deployed shows that N38.502 billion will go into the payment of foreign exchange denominated obligations. The amount set aside for the purchase of raw materials stood at N11.813 billion, while N7.365 billion is for working capital. Already the parent body of Unilever Nigeria has assured that they will take up their right issue.