The Nation Newspaper

Tag: foreign investors

  • Foreign investors dump Nigerian equities

    •Increase sales by 125%

    For every unit of purchase being made at the Nigerian stock market by foreign investors, they are selling two units as political risks and macroeconomic uncertainties continue to reduce investors’ appetite for Nigerian equities.

    Trading data on domestic and foreign portfolio investments (FPI) at the Nigerian Stock Exchange (NSE) showed that foreign investors’ outflows from the equities market increased by 124.7 per cent to about N131 billion in May as against N58.25 billion in April. However, there was a 3.45 per cent decrease in foreign inflows to N62.06 billion in May as against N64.28 billion recorded in April.

    The FPI report used two key indicators-inflow and outflow, to gauge foreign investors’ mood and participation in the stock market as a barometer for the economy. Foreign portfolio investment outflow includes sales transactions or liquidation of equity portfolio investments through the stock market while inflow includes purchase transactions on the NSE. The NSE report is generally regarded as a credible gauge of foreign portfolio investments in Nigeria as it coordinates data from nearly all active investment bankers and stockbrokers.

    Total transactions at the equities market increased by 49.96 per cent from N212.23 billion recorded in April to N318.27 billion in May.

    A five-month report showed that the cumulative transactions from January to May increased by 97.13 per cent to N1.409 trillion in 2018 compared with N714.99 billion recorded in the same period of 2017.

    The latest report stated that the institutional composition of the domestic market increased by 97.87 per cent from N46.51 billion in April to N92.03 billion in May. The retail composition declined by 22.92 per cent from N43.19 billion in April to N33.29 billion in May.

    In April, there was a positive net foreign inflow of N6.03 billion in April 2018 and N36.91 billion for the four-month period ended April 2018. In the comparable period ended April 2017, Nigerian equities had suffered net FPI deficit of N79.73 billion. Further analysis indicated positive net foreign inflow of N30.88 billion in first quarter 2018 compared with a negative net foreign investment position of N86.36 billion in comparable first quarter 2017.

    Month-on-month analysis had shown a positive trend in net foreign investment inflow throughout the first quarter 2018. Foreign inflow totalled N91.75 billion in January 2018 as against outflow of N74.64 billion. Foreign inflow and outflow stood at N44.89 billion and N38.33 billion respectively in February 2018 while foreign inflow and outflow recovered to N69.71 billion and N62.50 billion respectively in March 2018.

    Total transactions at the Nigerian equities market in first quarter 2018 had stood at N878.97 billion compared with N454.48 billion recorded in first quarter 2017. Nigerian domestic investors had accounted for N497.15 billion in first quarter 2018 as against N243.42 billion in comparable period of 2017.

     

     

  • 2019 elections: Equities sell-off by foreign investors to persist

    • FGN Bonds face under-subscription 

    Foreign investors are expected to continue divestments in Nigerian equities market as the 2019 general elections approach and the need for them to secure their investments heightens, analysts have predicted.

    Analysts at Afrinvest Limited, an investment and research firm, said the bearish run in the bonds market has been sustained following selloffs by local and offshore investors. They said local Pension Administrators were the majority players in the bonds market with major selloffs witnessed across the March-2027 and July-2034 instruments.

    “At the FGN Bonds Auction last week Wednesday, the 12.75 per cent Federal Government of Nigeria (FGN) April 2023 bond and 13.53 per cent FGN March 2025 instruments were 58.6 per cent and 45.5 per cent undersubscribed respectively. On the flip side, the 13.98 per cent FGN February 2028 instrument was 2.4 times oversubscribed as more investors positioned at the long end of the curve,” they said.

    In an emailed report to investors, Afrinvest explained that in the near term, it expects sustenance in the bearish sentiment leading to an appreciation in yields in the bonds market. “This is against the backdrop of Federal Government’s need to fund the 2018 budget as well as continued sell-offs by offshore investors ahead of 2019 general elections,” it said.

    It said a Primary Market Auction (PMA) is slated for this Wednesday with the Central Bank of Nigeria (CBN) offering N9.5 billion, N33.9 billion and N127.1 billion across the 91, 182 and 364-day tenors, with expectation of higher marginal rates across tenors.

    “We expect liquidity level (N79.5 billion positive) to remain tight at the beginning of the week as market anticipates FAAC inflows to ease situation. Also, an Open Market Operation (OMO) maturity of N238.7 billion is expected to hit the system on Thursday.

    “With a boost in system liquidity from these inflows, we expect the CBN to conduct OMO auctions in the early trading sessions of this week. In addition, we anticipate renewed buying interests by investors in the secondary market following attractive rates. FGN Bonds Market Update: Sustained Sell Offs Expected to Buoy Yields in the Bonds Market,” the report added.

    Last week, performance in the T-Bills market was bearish on the back of sustained selloffs by offshore investors across the emerging markets. As a result, average rates across all tenors advanced 20basis Points to close at 12.40 per cent.

    The CBN conducted OMO auction once last week – on Monday – in a bid to mop up the excess liquidity in the system (N841.9 billion positive), ahead of expected Federation Accounts Allocation Committee (FAAC) inflows and OMO maturities.

    However, investors’ bearish sentiment towards the OMO auctions witnessed in recent times was sustained as the auction was 84.3 per cent jointly undersubscribed (N350 billion offered as against N549.4 million subscription) – albeit 38 per cent higher than the previous week’s under-subscription rate. Investors’ weak appetite was on the back of more attractive investment options in the secondary market.

     

  • SEC assures foreign investors

    The Securities and Exchange Commission (SEC) has assured foreign investors of the safety of their investments in the Nigerian capital Market.

    Disclosing this when representatives of JP Morgan and Stanbic IBTC visited the Commission in Abuja weekend, Ag. Director General of SEC, Ms. Mary Uduk said all necessary controls are in place to ensure that the market is dynamic, free, fair and transparent for participants.

    Uduk said the Commission has embarked on several initiatives in a bid to ensure that investors in the market derive the benefits therein.

    She said the implementation of the Capital Market Master Plan has led to significant changes in the market. Some of these implemented initiatives are dematerialization of share certificates, recapitalization of capital market operators, establishment of the National Investors Protection Fund and inauguration of its board, as well as launch of the Corporate Governance Scorecard.

    Others are implementation of the e-Dividend Mandate Management System, establishment of Complaint Management Framework, transaction cost reduction, implementation of the direct cash settlement and the introduction of non-interest capital market products.

    The Acting DG disclosed that the Commission has put in place a robust investor protection machinery with severe sanctions on infractions of securities laws.

    “The implementation of this regime has led to the closure of various Ponzi schemes as well as the recovery of millions of naira belonging to innocent investors.

    “SEC champions zero tolerance on infractions and we have a range of sanctions depending on the level of infraction and how egregious the breach is, ranging from warnings, fines, suspensions, withdrawal of registrations and jail terms.

    “The idea is to improve transparency in the market and ensure that investors are safe”.

    On surveillance, Uduk said the Commission has surveillance mechanisms in place to detect possible suspicious trading/market manipulation activities.

    In his remarks, Nick Long, Representative of JP Morgan, expressed satisfaction with the performance of the Nigerian capital market adding that it is one of the reasons why it continues to attract international investors.

  • Higher interest rate ‘ll attract foreign investors, says Coronation

    Nigeria needs to offer a higher interest rates than it is currently doing to attract foreign investors seeking better returns, Coronation Research, said yesterday.

    In a report titled: 2018 Interest rate outlook, the research arm of Coronation Merchant Bank Group, examined the current yield on government-issued or Central Bank-issued one-year bills.

    Issuances from emerging market/developing countries such as Brazil, Russia, India and China (BRIC) countries; selected emerging markets with double-digit inflation and, selected sub-Saharan African countries were the target.

    It said Nigeria also needs to lock in domestic funds that might otherwise go to the foreign exchange market. “Rather than have market interest rates trend down with inflation, we believe that in second half of 2018 the Central Bank of Nigeria (CBN) will seek to increase the spread between inflation and the one-year risk-free rate, which it effectively sets with its Open Market Operation-OMO rate,” it said.

    The report said conditions for emerging market currencies have deteriorated in the last two months, adding that while the crisis in the Argentinian Peso is an extreme example, few emerging markets can take their exchange rate for granted and in some cases market interest rates have risen.

    “Countries such as Kenya and Egypt, that offer one-year risk-free local currency yields in excess of 5.00 percentage points (pp) above inflation, have had the best experience of preserving their foreign exchange rates over the year. Nigeria offers a one-year risk-free rate of 0.72 percentage point over its inflation rate.  In as much as the Central Bank of Nigeria (CBN) wishes to keep interest rates down, we believe that it will have to raise market interest rates by fourth quarter 2018,” it said.

    It said the CBN is aware of the risk of outflows of foreign investment in Naira money market instruments and the threat of pre-election spending that will most likely feed through to inflation in second half 2018.

    “For these two reasons we think that the CBN will raise its open market operation (OMO) rates to achieve an annual yield of 14 per cent to 15 per cent by fourth quarter 2018, from 13.20 per cent per annum (pa) recently.

     

  • Foreign investors overtake Nigerian investors as equities hit N1.09tr

    For the first time in five months, foreign investors have taken the lead from Nigerian investors and now account for the largest transactions at the stock market.

    Data on domestic and foreign portfolio investments (FPI) obtained by The Nation at the Nigerian Stock Exchange (NSE) indicated that foreign portfolio investors led with 15.48 percent over domestic investors.

    The latest update on FPI and domestic transactions showed that foreign investors accounted for 57.74 per cent of total transactions while domestic investors had 42.26 per cent for the month under review which ended April 30.

    The report indicated that foreign investors traded N122.53 billion while domestic investors accounted for N89.70 billion, representing total transaction value of N212.23 billion for the period.

    Capital Bancorp Plc Managing Director, Mr. Higo Aigboje said the latest FPI trend showed foreign investors’ confidence in the Nigerian economy.

    “It’s a positive thing, it shows more confidence, they are voting with their money. Local investors should also take the cue and increase their investments in the market,” Higo said.

    A four-month analysis showed that total transactions at the Nigerian equities market doubled to N1.09 trillion by the period ended April 30 compared with N509.38 billion recorded in the corresponding period ended April 30,  last year. On the aggregate, domestic investors, who had dominated transactions in the first quarter, still sustained a lead of 7.56 percentage points for the four-month period ended April 2018.

    The latest report also showed a sustained positive trend in FPIs with more inflow than outflow, meaning that foreign investors were investing more in Nigerian equities than they were taking out. The report showed a positive net foreign inflow of N6.03 billion in April 2018 and N36.91 billion for the four-month period ended April 2018. In the comparable period ended April 2017, Nigerian equities had suffered net FPI deficit of N79.73 billion. Further analysis indicated positive net foreign inflow of N30.88 billion in first quarter 2018 compared with a negative net foreign investment position of N86.36 billion in comparable first quarter 2017.

    The FPI report used two key indicators-inflow and outflow, to gauge foreign investors’ mood and participation in the stock market as a barometer for the economy. Foreign portfolio investment outflow includes sales transactions or liquidation of equity portfolio investments through the stock market while inflow includes purchase transactions on the NSE. The NSE report is generally regarded as a credible gauge of foreign portfolio investments in Nigeria as it coordinates data from nearly all active investment bankers and stockbrokers.

    The latest update validated the positive FPI trend in the first quarter 2018. FPI report for the first quarter ended March 31, 2018 showed that total value of transactions by foreign investors grew by 80.9 per cent to N381.82 billion in first quarter 2018 compared with N211.06 billion recorded in corresponding period of 2017. Total foreign inflow and outflow rose to N206.35 billion and N175.47 billion respectively in first quarter 2018, indicating a positive net foreign investment position of N30.9 billion. This compared with total foreign inflow and outflow of N62.35 billion and N148.71 billion recorded in comparable period of 2017, which left the country with net FPI deficit of N86.36 billion in first quarter 2017.

    Month-on-month analysis had shown a positive trend in net foreign investment inflow throughout the first quarter 2018. Foreign inflow totalled N91.75 billion in January 2018 as against outflow of N74.64 billion. Foreign inflow and outflow stood at N44.89 billion and N38.33 billion respectively in February 2018 while foreign inflow and outflow recovered to N69.71 billion and N62.50 billion respectively in March 2018.

    Total transactions at the Nigerian equities market in first quarter of the year stood at N878.97 billion compared with N454.48 billion recorded in first quarter 2017.  Domestic investors had accounted for N497.15 billion in first quarter of the year as against N243.42 billion in comparable period of 2017.

    Foreign investors had dominated transactions between last August and November but were overtaken by domestic investors in December 2017. Foreign transactions had since 2011 consistently outperformed domestic transactions. However, domestic transactions marginally outperformed foreign transactions in 2016 and 2017, accounting for 52 per cent of the total transaction value in 2017.

    There has also been a significant recovery in the pattern of transactions. Foreign transactions which had totalled N1.539 trillion in 2014, declined to N518 billion in 2016, but increased significantly by 133 per cent to N1.208 trillion in 2017, accounting for about 48 per cent of total transactions in 2017. The 11-year analysis showed that domestic transactions decreased by 62.46 per cent from N3.56 trillion in 2007 to N1.335 trillion in 2017. However, the performance in 2017 represented a significant increase of 111 per cent when compared with N634 billion recorded in 2016.

     

  • Foreign investors’ Q1 stakes on equities up by 80.9%

    Foreign investors almost doubled their stakes on equities in the first quarter.

    Foreign Portfolio Investors (FPIs) report for the first quarter ended March 31 showed that transactions by foreign investors grew by 80.9 per cent to N381.82 billion in first quarter compared with N211.06 billion recorded in corresponding period last year.

    The latest update on FPI transactions showed that foreign investors  invested more in equities than they were taking out. While domestic investors remained the larger bloc of investors, FPIs have increased over the past three months.

    The report by the Nigerian Stock Exchange (NSE) showed positive net foreign inflows of N30.88 billion compared with a negative net foreign investment position of N86.36 billion in the first quarter of last year.

    The report obtained at the weekend indicated that foreign inflows and outflows rose to N206.35 billion and N175.47 billion in first quarter, indicating a positive net foreign investment position of N30.9 billion. Total foreign inflow and outflow of N62.35 billion and N148.71 billion were recorded in comparable period of 2017, which left the country with net FPI deficit of N86.36 billion.

    The report used two key indicators-inflow and outflow to gauge foreign investors’mood and participation in the stock market as a barometer for the economy. Foreign portfolio investment outflow includes sales transactions or liquidation of equity portfolio investments through the stock market while inflow includes purchase transactions on the NSE.

    The report is regarded as a credible gauge of FPI as it coordinates data from nearly all active investment bankers and stockbrokers.

    Monthly analysis showed a positive trend in net foreign investment inflow in the first quarter of the year. Foreign inflow totalled N91.75 billion in January as against outflow of N74.64 billion. Foreign inflow and outflow stood at N44.89 billion and N38.33 billion in February while foreign inflow and outflow recovered hit N69.71 billion and N62.50 billion last month.

    On the aggregate, total foreign transactions stood at N166.39 billion in January, dipped to N83.22 billion in February and rose by 59 per cent to N132.21 billion in March.

    Total transactions at the equities market in first quarter stood at N878.97 billion compared with N454.48 billion recorded in first quarter 2017. Domestic investors had accounted for N497.15 billion in first quarter as against N243.42 billion last year.

    Yearly, the report showed that since 2011, foreign transactions consistently outperformed domestic transactions. However, domestic transactions marginally outperformed foreign transactions in 2016 and 2017, accounting for 52 per cent of the total transaction value last year.

    There has also been a significant recovery in the pattern of transactions. Foreign transactions which had totalled N1.539 trillion in 2014, declined to N518 billion in 2016, but increased significantly by 133 per cent to N1.208 trillion last year, accounting for about 48 per cent of total transactions in 2017. Annualised, the first quarter performance indicates that the market is on course to reach within the 2014 range.

    Eleven-year analysis showed that domestic transactions decreased by 62.46 per cent from N3.56 trillion in 2007 to N1.335 trillion in 2017. However, the performance in 2017 represented a significant increase of 111 per cent when compared with N634 billion recorded in 2016.

    Chartered Institute of Stockbrokers (CIS) former president and Vice Chairman/Chief Executive Officer, Capital Assets Limited, Mr. Ariyo Olushekun, said the latest FPI report indicates confidence in the  economy and the capital market.

    According to him, the positive trading position of the FPI shows that foreign investors see value in the economy and the stock market, since investors trade for value.

    “This should further encourage domestic investors to take advantage of the opportunities in the capital market. Despite the political situation, I think our economy is on a stronger footing, and that’s what the foreign investors have shown by looking ahead and taking positions,” Olushekun said.

     

  • SANUSI FLAYS FG OVER FOREIGN INVESTORS

    The Emir of Kano, Alhaji Mohammed  Sanusi, yesterday expressed displeasure at the attitude of some government officials to foreign investors.

    The former governor of the Central Bank (CBN) said Nigeria has to reduce unnecessary bureaucracy if it must succeed in bringing in the much needed foreign investments.

    Emir Sanusi, who spoke at the Nigeria Embassy in Washington DC, said Nigeria has a strong economy and market, which ordinarily should make it an investment hub in Africa, yet many investors shy away from the country on account of the attitude of some government officials.

    He said: “Nigeria maybe the biggest economy, but an investor may decide that rather than go through the hassle of investing, say $500 million in Nigeria, he may decide to invest $100 million each in Ghana, Cote d’Ivoire, South Africa, or Rwanda.

    “I’ll give you a simple example, we had a meeting today (yesterday) with investors.  We were supposed to start at 10 am.

    “So I came in early, and I was taken to the Nigerian Ambassador’s office to sit down, while investors were waiting for me outside.  That is not how you attract investors.

    “Also, we had a list of top Nigerians that were to attend the meeting, like the Vice President and some Ministers. Some of these ministers were in town but they didn’t come.

    “You (Nigeria) invite US Commerce Secretary, some top investors and your Ministers are in Washington and they do not come to talk to the investors about Nigeria. That is not done.”

    Continuing, Emir Sanusi said: “I bet you that if the Rwandan Embassy had this kind of forum, President Kagame himself would be there telling people to come to his country.

    “There is absolutely no reason why the Nigerian Embassy in the US will organise ‘Nigeria is open for business’ forum, with Nigerian ministers and some governors in town and not in here to meet these investors. And there is no reason to start one hour late, or that our public address systems should not be working.

    “This is the first point of entry for these investors.  They haven’t even come to Nigeria and this is their experience already. He may say that if I’m having this experience in DC, what will happen when I go to Abuja or Kano? How do I get to see the governor? Will I wait 10 hours?

    “And for these kind of people (investors) in DC, they had other Heads of States to meet, World Bank to meet and an hour is a lot of time for them to wait for you.

    “So, I think we need to look at those kind of things that investors look at and have a very honest conversation, sector by sector, region by region, state by state, what do we need to do to make those areas attractive.”

    But he was quick to add that investors are still interested in investing in the country’s agriculture, mining and technology sectors and not just oil.

    He said that Nigeria had a chance of getting foreign investors to come in and invest in areas that would help in diversifying the economy if they behave more professionally.

    Meanwhile, the founder of Oriental Energy, Alhaji Mohammed Indimi, has pledged to continue to expand his investment in Nigeria and also encourage his friends both home and abroad to do so.

    He spoke at the 2018 US-Nigeria investment summit tagged “Nigeria is Open for Business” designed to showcase some of the economically viable investment opportunities in Nigeria.

    The emphasis is on getting the much needed private capital to achieve the investment projects listed in the Economic Recovery and Growth Plan.

    Some of the ministers billed to take part in the forum were those of Trade and Investment, Finance, Transportation, Agriculture, Science and Technology and also the Minister of state for Petroleum and the Central Bank Governor.

    Only Transportation Minister Rotimi Amaechi turned up.

  • Nigeria woos foreign investors with infrastructure

    Nigeria woos foreign investors with infrastructure

    Vice President Yemi Osinbajo in Davos, Switzerland, said Nigeria was ready to partner international investors and friendly nations to develop Nigeria’s manufacturing sector and promised to boost infrastructure to provide ambience for investment.

    Osinbajo said this in a statement by his Special Senior Assistant on Media, Laolu Akande, in Abuja.

    Osinbajo stated this while meeting with a delegation of the Japan External Trade Organization (JETRO), led by Mr Hiroyuki Ishige, the organisation’s Chairman and CEO on the sideline of the World Economic Forum (WEF).

    According to Osinbajo, the Buhari administration working with the Private Sector is determined to boost the Nigerian manufacturing sector and will be engaging with international partners and friendly nations to realise the goal.

    “Nigeria and Japan should be doing more, far more based on the existing long relationship and trade between both countries,” said the vice president.

    According to him, the collaboration will be mutually beneficial to both countries.

    The vice president said manufacturing was one sector that Nigeria and Japan could work together and deepen their economic relations.

    “Nigeria, the largest economy in Africa will be getting involved in the manufacturing global chain and it would be private sector led, government would be backing it up,” Osinbajo explained.

    He cited the example of the Special Economic Zones (SEZ) being set up in the country as a major boost to the sector, adding that the zones will have all needed infrastructure.

    “We will provide world-class infrastructure and this is a good opportunity for investors around the world to tap into, an opportunity to do some game-changing projects, to do something big,” he added.
    , [
    Earlier, JETRO’S Chairman, noted the rise of Japanese firms in Africa and highlighted the country’s readiness to promote business in Nigeria and support Nigeria’s export promotion.

    Also the vice president participated in the WEF’s solo video message recording on the conference’s theme: “Shared Future in a Fractured World”.

    In the programme, heads of government and business leaders answered questions around economic development sent in from the global public.

    Other leaders who participated in the video included French President, Mr Emmanuel Macron, and the Prime Minister of Norway, Mrs Erna Solberg. (NAN)

  • Oil prices rise attracting foreign investors, says Afrinvest

    The upturn in commodity prices, impressive performance in the oil sector, and adoption of pro-market forex reforms by the Central Bank of Nigeria (CBN) have made Nigeria’s financial market attractive to investors, Afrinvest (West Africa) Limited has said.

    Speaking during the release of its 2018 Outlook for the Nigerian Economy and Financial Market in a report titled, ‘The Virtuous Cycle… Again!’, its Managing Director, Ike Chioke said the report offers an assessment of growth prospects in 2018, in light of the notable recovery of the Nigerian economy in 2017.

    Chioke said the report, therefore, highlights current macroeconomic conditions that have set the stage to consolidate on the growth een since second quarter of last year.

    He said the 2017 was indeed a year of recovery for the Nigerian economy. “Through deliberate efforts from the government, we saw a rebound in economic activity, as well as strengthened investor confidence and business sentiments. It is against the backdrop of these improving macroeconomic conditions that we have taken a positive outlook for 2018, as we expect the economy to continue on its positive trajectory since its recovery”.

    “Akin to our last 2-year bull run in 2012 and 2013, we have been ushered into a “virtuous cycle” marked by stability in external sector indicators and fiscal balance, declining inflationary pressures, improving growth profile, increasingly accommodative monetary policy and strong capital market returns. In these early days, we have seen market capitalisation and the Nigeria Stock Exchange (NSE) All Share Index at record highs, and we advocate a cautious, active trading strategy in the current bull market.”

    The report also addresses the slow recovery of the Non-Oil sector and proffers strong prospects for growth in anticipation of expansion in fiscal spending, deceleration of inflation rate and increase in private investments.

  • Unilever Nigeria raises N59b from foreign investors, others

    Unilever Plc, United Kingdom, the majority core investor in Unilever Nigeria, provided more than N35 billion in the new equity capital to Unilever Nigeria Plc as the Nigerian subsidiary successfully raised N59 billion new equity funds to bolster its operations.

    Listing document at the weekend showed that Unilever Nigeria recorded full subscription to its recent rights issue, raising N58.9 billion from both the majority core investors and other minority shareholders.

    Unilever Nigeria had floated a supplementary offer to raise N58.9 billion in new equity funds by selling 1.962 billion ordinary shares of 50 kobo each to existing shareholders at a price of N30 per share. The rights issue was pre-allotted to shareholders in the register of the company as at the close of business on June 28, 2017 on the basis of 14 new ordinary shares for every 27 ordinary shares held.

    Following the full subscription, a total of 1.96 billion ordinary shares of 50 kobo each were added to the outstanding shares in the name of Unilever Nigeria on the Daily Official List of the Nigerian Stock Exchange (NSE). With the new listing of 1.96 billion ordinary shares, the total issued and fully paid up shares of Unilever Nigeria has now increased from 3.78 billion ordinary shares to 5.745 billion ordinary shares of 50 kobo each.

    Prior to the rights issue, Unilever UK held 60.06 per cent majority equity stake in Unilever Nigeria through its Unilever Overseas Holdings BV. Stanbic Nominees Nigeria Limited held the second largest equity stake of 10.43 per cent in Unilever Nigeria.

    Unilever UK, which had shown sustained interest in increasing its majority shareholding in the Nigerian subsidiary, fully picked up its rights. It had earlier mopped up additional shares through open market purchases at the Exchange to increase its majority stake by 1.53 per cent from 58.53 per cent in 2015 to 60.06 per cent in 2016. It had also made open market purchases in 2015.

    Unilever UK had earlier indicated its intention to acquire up to 75 per cent controlling equity stake in the Nigerian subsidiary. It had in first half of 2015 sought to increase its majority equity stake in the Nigerian subsidiary from 50 per cent to 75 per cent, citing long-term strategic importance of Unilever Nigeria to its global business.

    In a transaction initially valued at about N43 billion or £144.5 million, Unilever Overseas Holdings sought to increase its equity stake in the Nigerian company from 50.04 per cent up to a maximum of 75 per cent by buying additional shares from minority shareholders. The tender offer sought to acquire about 942.42 million ordinary shares in Unilever Nigeria at a price of N45.50 per share in cash.