By Peter OBIORA InvestAdVocate
Lagos (INVESTADVOCATE)-World soap makers, Unilever Overseas Holdings B.V said on Wednesday it plans to raise its stake in its Nigerian unit to as much as 75 percent from 50.05 percent to benefit from expected economic growth in the country.
According to the company in a statement on its official website, the move is to also maintain the company’s listing on the Nigerian Stock Exchange (NSE). “Unilever Nigeria is present in the Nigerian market in foods, refreshment, household and personal care products,” the company said.
Unilever Overseas say under the terms of the proposal, it would acquire up to 944,465,532 shares in the company at an intended offer price of N 45.50 per share in cash. “It is intended that the proposal would be effected by way of a Tender Offer, by giving any shareholder who elects to sell some or all of their shares in Unilever Nigeria the opportunity to do so,” the detergent producer added.
The company affirmed the proposal represents a premium of 33.8 percent to the company’s closing share price on 23 March 2015 and a premium of 33.2 percent to the three (3) month Volume Weighted Average share price.
The soap maker says the total value of the transaction at the intended Offer Price and maximum acceptance is approximately N42.973 billion or €200 million (based on prevailing foreign exchange rates).
Bruno Witvoet, executive vice president of Unilever Africa: “This Proposal demonstrates our commitment to the Unilever Nigeria business and confidence in the long-term growth prospects of the company and consumer goods sector in Nigeria.”
However, the proposal is subject to the prior approval of the NSE and the Securities and Exchange Commission (SEC).
Citigroup Global Markets Limited and Chapel Hill Advisory Partners Limited are acting as financial advisers to Unilever Overseas Holdings B.V.
