August 24, 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 33.33% discount to the stock’s current market price of N45.00,

     (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 N39.88.

At the Rights price, possible returns on both our TP and the ex-rights price are c.20% and 32.93% respectively. We suggest that shareholders exercise their Rights.