Unilever Nigeria, where Unilever Overseas holds 60 per cent equity stake, will launch a rights issue to deleverage its balance sheet and increase working capital for the business.
Expert say, if the rights is executed at the current market value of N33.25, the N63bn proposed capital raise equates to new 1.89 billion ordinary shares that would be offered to existing shareholders (assuming all current shareholders take up their rights) of the company.
This potentially increases the overall shares outstanding in favour of UNILEVER to 5.68bn (from 3.78bn).
The shareholders of Unilever Nigeria Plc at its 92nd Annual General Meeting, also approved the Board of Directors’ proposal for a dividend payout of N378,330,000, that is 10 kobo gross per share which represents an increase of 100 per cent from 2015.
Addressing shareholders at the AGM, the chairman of the company, His Majesty, Nnemeka Achebe, the Obi of Onitsha said: “Our company recognises that these are unusual times, in which prudence demands that the company continues ploughing back into the business in the short to medium term to secure a sustainable future.”
