Unilever announces intention to increase equity in Nigeria business in potential €200m deal
The proposed move will see Unilever up its equity stake in the Nigeria business from 50.04% up to a maximum of 75%, with the aim to maintain the company's listing on the Nigerian Stock Exchange as well.
If accepted at the maximum level, the value of the deal could reach €200 million (based on prevailing foreign exchange rates).
Unilever Nigeria has a 91 year history in the country, and is present in the Nigerian market in foods, refreshment, household and personal care products, where its brands include Lux, Lifebuoy, Vaseline and Pears.
Commitment
"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," Bruno Witvoet, Executive Vice President of Unilever Africa.
It also follows company CEO Paul Polman’s visit to Nigeria in September last year, in which he reaffirmed the Anglo-Dutch consumer goods firm’s continuing commitment to growing its business in the country.
“In the last 3 years we have invested $200 million in Nigeria; this is in keeping with our strategic ambition to grow our business in Nigeria in the coming years,” said Polman.
The figures
The proposal to acquire a further stake in the Nigeria business will be subject to the prior approval of The Nigerian Stock Exchange and the Nigerian Securities and Exchange Commission.
The formal offer documentation will be posted to shareholders as soon as these approvals are obtained.
Under the terms of the bid, Unilever would acquire up to 944,465,532 shares in Unilever Nigeria at an intended offer price of NGN 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 total value of the transaction at the intended Offer Price and maximum acceptance is approximately NGN 42.973 billion or €200 million (based on exchange rates).
