August 22, 2017/Cordros Research

Unilever Nigeria Plc’s (UNILEVER) Rights Issue, opened on 31 July, 2017, will close on Friday, 08 September 2017. The Rights Issue is being undertaken to enable UNILEVER repay its various outstanding loan obligations and to support working capital.

Details of the Rights:

Being Issued –                       1,961,709,167 Ordinary Shares of 50 kobo each

Rights Price –                         N30.00 per share

Gross Issue Proceeds –        N58, 851,275,010.0

Provisional Allotment –         14 new Ordinary Shares for every 27 Ordinary Shares of 50 kobo each
held as at the close of business on 28 June 2017

Worthy of Note:

     (1)    The Rights is offered at 34.8% discount to the stock’s current market price of N46.0,

     (2)    Our most recent research report values the company’s stock at N35.92, and

     (3)    At current price, the theoretical value of the stock after the Rights is estimated at N40.54.

At the Rights price, possible returns on both our TP and the ex-rights price are c.20% and 35% respectively. We suggest that shareholders exercise their Rights.

How to Participate in the Rights:

     (1)    For existing qualified shareholders

• Complete the rights issue form indicating full acceptance, partial acceptance or requesting additional rights

• Make payment for the total rights taken (either cheque or bank transfer) either directly to the Registrars or preferably through the stockbroker

• Submit the completed the rights issue form and all evidence(s) of payments to the receiving agent for onward submission

     (2)    For potential investors

• Complete share transfer form

• Make payments for agreed traded rights

• Submit transfer form and evidence of payment to receiving agents