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Tag: Unilever

  • Unilever, Multichoice unveil youth campaign

    Unilever and Multichoice Nigeria have launched a joint campaign tagged in an effort to provide a platform whereby youth can express themselve and show to the world what they can offer.

    During the launch at University of Lagos, the Brand Manager, Rexima, Unilever, Mrs. Shadiat Shoyombo said the programme, tagged We Care was unveiled with the aim of fuelling the passion of the student towards achievable goals.

    She said: “Our partnership with Multichoice on activation of this campaign is to help promote lives of the youth. We realise many youth are talented and they needed assistance to be able to achieve their aim, goal and aspirations. Our aim is to give the youth platform where they can utilize their potential, where they can be useful in times of their interest, career wise, entertainment, comedy. We are going to all tertiary institutions such as universities, polytechnics and colleges in other to tell them that we care. “

    She said the campaign has touched 16 schools so far.  “University of Lagos is the 17th of the schools. Also, the most important return investment for us is the future of the student and we believe we are investing in their future. We will be happy to see that in the next few years, those students will be part of Unilever and Multichoice, to see them as star, and our brand,” she added.

     

     

    The Sale Supervisor, MultiChoice, Nigeria, Mr.  Oluwaseun King also said the campaign is meant to bring out the passion of the youth and empower them through the initiative. “It is also meant to prepare them for the labour market. Most of the students want to graduate and wait for the government to provide jobs for them. We notice that and introduced canvasser scheme where they can learn, make gains for themselves through our product given to them to sell on the social media. The aim is to make you financially stable and bring out the creativity in you,” he said.

  • Unilever, Multichoice unveil youth campaign

    nilever and Multichoice Nigeria have launched a joint campaign tagged in an effort to provide a platform whereby youth can express themselve and show to the world what they can offer.

    During the launch at University of Lagos, the Brand Manager, Rexima, Unilever, Mrs. Shadiat Shoyombo said the programme, tagged We Care was unveiled with the aim of fuelling the passion of the student towards achievable goals.

    She said: “Our partnership with Multichoice on activation of this campaign is to help promote lives of the youth. We realise many youth are talented and they needed assistance to be able to achieve their aim, goal and aspirations. Our aim is to give the youth platform where they can utilize their potential, where they can be useful in times of their interest, career wise, entertainment, comedy. We are going to all tertiary institutions such as universities, polytechnics and colleges in other to tell them that we care. “

    She said the campaign has touched 16 schools so far.  “University of Lagos is the 17th of the schools. Also, the most important return investment for us is the future of the student and we believe we are investing in their future. We will be happy to see that in the next few years, those students will be part of Unilever and Multichoice, to see them as star, and our brand,” she added.

    The Sale Supervisor, MultiChoice, Nigeria, Mr.  Oluwaseun King also said the campaign is meant to bring out the passion of the youth and empower them through the initiative. “It is also meant to prepare them for the labour market. Most of the students want to graduate and wait for the government to provide jobs for them. We notice that and introduced canvasser scheme where they can learn, make gains for themselves through our product given to them to sell on the social media. The aim is to make you financially stable and bring out the creativity in you,” he said.

  • Unilever restates commitment sustainable development

    On line with the UN Global Goals initiative, Unilever Nigeria, has reiterated its commitment to continue advancing the lives of Nigerians through its sustainable living plan.

    Speaking on the 17 global goals recently ratified at the UN Summit held in New York, Mr. Yaw Nsarkoh, Managing Director, Unilever Nigeria Plc said the Unilever Sustainable Living Plan (USLP) was launched five years ago to tackle some of the issues raised at the summit.

    “In 2010 we set out the USLP as a blueprint for achieving our vision to decouple growth from environmental impact and increase social impact,” said Nsarkoh.

    On September 25, 2015, leaders of 193 UN member states in New York ratified the 17 global goals that will provide the blueprint for the world’s development till 2030.The ambitious agenda – which aims to tackle poverty, climate change and inequality for all people in all countries – was signed off at the start of a three-day UN summit on sustainable development.

    “Through our brands social mission, we have encapsulated some of the issues raised in the UN Global Goals into three focus areas of – reducing our environmental impact, improving the health and well-being of more than a billion people, and enhancing the livelihoods of millions working in our value chain,” Nsarkoh informed.

    For instance, Pepsodent, in partnership with the Nigerian Dental Association, continues to contribute to improving professional dental standards and deliver oral health care projects across multiple channels to change people’s habits. Earlier this year, Pepsodent led the global movement for better dental care on World Oral Health day by hosting 1000 children in the same location to take a pledge to brush day & night, and encourage their parents to do same. And by 2020, Unilever aims to reach 10 million children in Nigeria with its ‘Brush Everyday Day and Night Oral Health’ campaign to ensure healthy life style.

    “Through our Women Empowerment Programme tagged ‘Gbemiga’, Unilever has helped women in rural communities in South-West Nigeria set up their own businesses, and increase their earnings and quality of life. Many women have benefited from this project so far,” Nsarkoh said.

    Unilever believes that the challenges that the Global Goals aim to tackle have a huge impact on its business and it is key for the sustainable development of Nigeria. For a safe environment, Unilever Nigeria is constantly making efforts to reduce environmental impact by ensuring that effluents from factories do not degrade the environment. This has come through in areas like hazardous waste reduction through focused action; reuse and recycling; and partnership with recycling organisations.

  • Unilever increases majority shareholding in Unilever Nigeria

    Unilever Overseas Holdings, the United kingdom-based foreign core investor in Unilever Nigeria, might have successfully increased its majority shareholding in Unilever Nigeria Plc.

    Market sources yesterday said Unilever’s recent tender offer was successful, citing reports by parties to the offer.

    Unilever had on June 25, 2015 closed acceptance list for a £144.5 million tender offer, which sought to increase its equity stake in Unilever Nigeria 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. The tender offer, which was initially scheduled to close on Wednesday June 10, was extended till Thursday June 25. The parties to the tender offer then said the extension was to give shareholders ample opportunity to consider the tender offer citing the disruption created by the fuel scarcity during the period of the offer.

    Market sources in the know said Unilever has increased its majority equity holding to more than 70 per cent.

    “They did their homework well and targeted the portfolio investors which held substantial shares, many of which felt they could bail out with the tender price. The Nigerian minority shareholders, which were protesting had relatively insignificant shareholdings,” said a source.

    The shareholding range analysis of Unilever Nigeria for the period ended December 31, 2015, which was presented in May 2015, indicated that the vast number of Nigerian minority shareholders, who constituted some 90 per cent of the number of shareholders, held less than 15 per cent equities in the company.

    Unilever, a source said, had concentrated on some three per cent of the shareholders and had sought their buy-in in the finalization of the tender offer.

    The downtrend at the stock market also buoyed the tender offer, with the company’s share price at the Nigerian Stock Exchange (NSE) mostly trailing the offer price.

    Nigerian minority retail shareholders had criticized the offer as self-serving and unfair. Shareholders’ leaders said they would mobilize against the tender offer describing it as a disservice and another way to sideline Nigerians from the benefits of the company they had helped to nurture with their funds and patronage.

    Shareholders said giving the foreign investor undue control could short-change the minority shareholders citing the voluntary delisting of Nigerian Bottling Company (NBC) by the foreign core investors, who used their majority shareholdings to push through delisting of the iconic company.

    But Unilever Overseas Holdings B.V, in a statement signed by its director Richard Hazell, said it was making the additional share acquisition as part of long-term strategic plan by the conglomerate as it believes that Nigeria offers significant growth potential.

    “The Unilever Group has had a major presence in Nigeria for many years and continues to believe that the country offers significant growth potential. This makes Nigeria a strategic long term investment priority for Unilever Overseas. Globally, the Unilever Group is focused on investing in the foods, household and personal care categories and the long heritage and great brands of Unilever Nigeria in these categories in Nigeria make it attractive for Unilever Overseas to increase its holding in Unilever Nigeria, whilst maintaining its stock exchange listing,” Unilever stated in the statement enclosed in the tender offer.

    President, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said the tender offer was another way of taking control of Nigerians’ shares and it would detract from Nigerians’ ability to benefit from the wealth creation from their national and personal resources.

    According to him, shareholders and other stakeholders need to look beyond the metrics of pricing, procedures and technicality of such tender offer to real national issue of economic wealth creation, participation and empowerment.

    “I am totally against it, and the regulators should sit down and review the proposal. If they can stop GlaxoSmithKline from such transaction, I don’t see reason why they shouldn’t take a second look at this,” Nwosu said.

  • Shareholders thumb down Unilever’s tender offer

    Shareholders thumb down Unilever’s tender offer

    Nigerian minority retail shareholders appeared set against a proposal by Unilever Overseas Holdings, the United Kingdom-based foreign core investor in Unilever Nigeria Plc, to acquire shares owned by minority shareholders to increase its majority equity stake in the Nigerian subsidiary.

    In a transaction valued at about N43 billion or £144.5 million, Unilever Overseas Holdings plans to increase its equity stake in the Nigerian company from 50.04 per cent up to a maximum of 75 per cent. Unilever Overseas Holdings proposes to acquire about 944.47 million ordinary shares in Unilever Nigeria at an intended offer price of N45.50 per share in cash.

    Unilever Nigeria’s share price opened yesterday at the Nigerian Stock Exchange (NSE) at N45.10 per share. The conglomerate had traded at N34 per share in the wake of the announcement, at a period the general market was extremely bearish.

    Shareholders’ leaders and other stakeholders who spoke to The Nation said they would mobilize against the tender offer describing it as a disservice and another way to sideline Nigerians from the benefits of the company they had helped to nurture with their funds and patronage.

    Shareholders said besides the unattractive offer price, giving the foreign investor undue control could short-change the minority shareholders citing the voluntary delisting of Nigerian Bottling Company (NBC) by the foreign core investors, who used their majority shareholdings to push through delisting of the iconic company.

    President, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said the tender offer is another way of taking control of Nigerians’ shares and it would detract from Nigerians’ ability to benefit from the wealth creation from their national and personal resources.

    According to him, shareholders and other stakeholders need to look beyond the metrics of pricing, procedures and technicality of such tender offer to real national issue of economic wealth creation, participation and empowerment.

    “I am totally against it, and the regulators should sit down and review the proposal. If they can stop GlaxoSmithKline from such transaction, I don’t see reason why they shouldn’t take a second look at this,” Nwosu said.

    He berated Nigerian capital market professional rooting for such acquisitions, noting that they were putting their personal interests above the general interest and benefit of Nigerian shareholders and capital market.

    Alhaji Gbadebo Olatokunboh, a founding member of the Nigeria Shareholders Solidarity Association (NSSA) and shareholders’ activist, said there were no incentives in the tender offer and it could lead to future regrets for Nigerian shareholders.

    According to him, Unilever neither hold private or public consultation with the minority Nigerian shareholders before launching the acquisition plan to explain the rationales for such move or seek the inputs of the Nigerian shareholders on the future plan of the conglomerate.

    “GSK tried it and failed, they will also fail,” Olatokunboh said.

    Other shareholders berated Unilever for its unfriendly investors’ relation management noting that Nigerian shareholders might be in for worse if the core investor gets a deciding majority equity stake. Extant Nigerian laws require 75 per cent vote in favour of major corporate changes including mergers and acquisitions, share restructuring and delisting among others.

    Some shareholders, who craved anonymity, said the conglomerate appeared to hold Nigerian shareholders in disdain citing the use of teargas to disperse rowdy shareholders at the conglomerate’s annual general meeting.

    The nation had reported exclusively that Unilever had filed the tender document with the Securities and Exchange Commission (SEC) and secured the necessary approval to launch the tender offer. A source in the know at SEC confirmed that the apex capital market regulator has granted “no objection” letter to the tender document, a market refrain for regulatory approval.

    Sources said Unilever will soon send out the tender offer document to shareholders. As a tender offer, the offer will be made to shareholders directly and any shareholder who elects to sell some or all of their shares in Unilever Nigeria will have the opportunity to do so.

    Citigroup Global Markets Limited and Chapel Hill Advisory Partners Limited have been the financial advisers to Unilever on the proposed transaction.

    While the attainment of 75 per cent equity stake will give Unilever Overseas the needed majority shareholding to effect major changes including delisting, mergers and acquisitions and share capital and corporate restructuring among others, the foreign core investor has promised to maintain Unilever Nigeria’s listing on the Nigerian Stock Exchange (NSE).

    Unilever Nigeria has been struggling with rising financing expenses. While it witnessed considerable growth in its top-line and effectively curtailed its operating expenses in the first quarter, burgeoning financial expenses undermined the performance of the conglomerate during the period.

    Interim report and accounts of Unilever Nigeria for the three-month period ended March 31, 2015 showed that while sales grew by eight per cent and the group reduced operating expenses by nine per cent, a double in financial charges within the three months overwhelmed the performance of the conglomerate.

    Unilever Nigeria’s pre and post tax profits dropped by 21 per cent each, a situation that simultaneously cut basic earnings per share by four kobo from 20 kobo in first quarter 2014 to 16 kobo in first quarter 2015.

    Key extracts of the unaudited report showed that sales rose to N14.91 billion in first quarter 2015 as against N13.83 billion recorded in comparable period of 2014. Financial charges jumped by 114 per cent from N381.6 million in first quarter 2014 to N817.91 million in first quarter 2015. With this, profit before tax dropped from N1.09 billion to N864.74 million while profit after tax slipped by same margin from N750.63 million to N590.45 million.

    Key extracts of the audited report and accounts of Unilever Nigeria for the year ended December 31, 2014 showed declines in the top-line and the bottom-line. While sales were tepid, the bottom-line performance was however worsened by significant increase in finance charges.

    Turnover dropped by seven per cent from N60 billion in 2103 to N55.75 billion in 2014. Interest expense, otherwise known as finance charges, however rose by 65 per cent from N1.16 billion to N1.91 billion. This further constrained the profitability of the conglomerate as pre-tax profit dropped by 58 per cent from N6.79 billion to N2.87 billion. After a 78 per cent reduction in tax provisions, net profit after tax dropped by 49 per cent to N2.41 billion in 2014 as against N4.72 billion recorded in 2013.

    Earnings per share consequently dropped from N1.25 in 2013 to 64 kobo in 2014. The contraction also affected the company’s balance sheet as shareholders’ funds dropped by 20 per cent from N9.35 billion to N7.48 billion. In latest dividend payout, shareholders received a dividend per share of 10 kobo for the 2014 business year as against N1.25 received for the 2013 business year.

    The board of the conglomerate said it took the difficult decision to drastically reduce its dividend payout as a delicate balancing act to provide the company with enough retained earnings to finance its growth targets while meeting immediate expectation of shareholders.

    Chairman, Unilever Nigeria Plc, HRM Nnaemeka Achebe, said the decision on the dividend payout was difficult because the directors of the company were mindful of the dividend expectation of the shareholders but were also focused on the financing need for the company’s future growth.

  • Unilever set to make tender offer for more shares in Unilever Nigeria

    Unilever set to make tender offer for more shares in Unilever Nigeria

    SEC says no objection to tender

    Unilever Overseas Holdings, the United Kingdom-based foreign core investor in Unilever Nigeria Plc, has  concluded arrangements to launch its tender offer for acquisition of additional equity stake in the Nigerian subsidiary in a transaction valued at about N43 billion or £144.5 million.

    Authoritative sources in the know of the transaction told The Nation that Unilever had filed the tender document with the Securities and Exchange Commission (SEC) and secured the necessary approval to launch the tender offer. A source in the know at SEC confirmed that the apex capital market regulator has granted “no objection” letter to the tender document, a market refrain for regulatory approval.

    Sources said Unilever will soon send out the tender offer document to shareholders of Unilever Nigeria ahead of the May 2015 annual general meeting of the conglomerate. As a tender offer, the offer will be made to shareholders directly and any shareholder who elects to sell some or all of their shares in Unilever Nigeria will have the opportunity to do so.

    Citigroup Global Markets Limited and Chapel Hill Advisory Partners Limited have been the financial advisers to Unilever on the proposed transaction.

    Under the acquisition tender, Unilever Overseas Holdings plans to increase its equity stake in the Nigerian company from 50.04 per cent up to a maximum of 75 per cent. Unilever Overseas Holdings proposes to acquire about 944.47 million ordinary shares in Unilever Nigeria at an intended offer price of N45.50 per share in cash. Unilever Nigeria, which had traded N34 per share in the wake of the announcement, had rallied above N40. It opened this week at N43.43 and closed the first trading session lower at N41.65 per share.

    At N34 per share, the proposed offer price initially represented a premium of 33.8 per cent on the company’s share price and a premium of 33.2 per cent on the three-month volume weighted average share price.

    The conclusion of the pre-tender process foreclosed earlier caution by Unilever that it has not reached any definitive agreement to continue with the tender proposal. Unilever Overseas had stated that it may not proceed with the proposal or vary the terms of the proposal in any way.

    While the attainment of 75 per cent equity stake will give Unilever Overseas the needed majority shareholding to effect major changes including delisting, mergers and acquisitions and share capital and corporate restructuring among others, the foreign core investor has promised to maintain Unilever Nigeria’s listing on the Nigerian Stock Exchange (NSE).

    Unilever Nigeria has been struggling with rising financing expenses. While it witnessed considerable growth in its top-line and effectively curtailed its operating expenses in the first quarter, burgeoning financial expenses undermined the performance of the conglomerate during the period.

    Interim report and accounts of Unilever Nigeria for the three-month period ended March 31, 2015 showed that while sales grew by eight per cent and the group reduced operating expenses by nine per cent, a double in financial charges within the three months overwhelmed the performance of the conglomerate.

    Unilever Nigeria’s pre and post tax profits dropped by 21 per cent each, a situation that simultaneously cut basic earnings per share by four kobo from 20 kobo in first quarter 2014 to 16 kobo in first quarter 2015.

    Key extracts of the unaudited report showed that sales rose to N14.91 billion in first quarter 2015 as against N13.83 billion recorded in comparable period of 2014. Financial charges jumped by 114 per cent from N381.6 million in first quarter 2014 to N817.91 million in first quarter 2015. With this, profit before tax dropped from N1.09 billion to N864.74 million while profit after tax slipped by same margin from N750.63 million to N590.45 million.

    The latest earnings report further raised concerns about the return outlook for the conglomerate after it recent announcement of reduction in dividend payout from N4.73 billion to N378.3 million. Current dividend recommendation released by the board of directors of the conglomerate showed that shareholders would receive a dividend per share of 10 kobo for the 2014 business year as against N1.25 received for the 2013 business year. The reduction highlights the steep decline in the performance of the company in 2014.

    Key extracts of the audited report and accounts of Unilever Nigeria for the year ended December 31, 2014 showed declines in the top-line and the bottom-line. While sales were tepid, the bottom-line performance was however worsened by significant increase in finance charges.

    Turnover dropped by seven per cent from N60 billion in 2103 to N55.75 billion in 2014. Interest expense, otherwise known as finance charges, however rose by 65 per cent from N1.16 billion to N1.91 billion. This further constrained the profitability of the conglomerate as pre-tax profit dropped by 58 per cent from N6.79 billion to N2.87 billion. After a 78 per cent reduction in tax provisions, net profit after tax dropped by 49 per cent to N2.41 billion in 2014 as against N4.72 billion recorded in 2013.

     

     

     

     

     

     

     

     

     

     

  • Unilever unveils rebranded Lux

    Unilever Nigeria Plc, manufacturers of the iconic beauty brand, Lux beauty soap, has introduced three new variants to the Lux collection. They are Velvet Touch, Soft Touch and Soft Caress.

    Unveiling the three rebranded Lux at the House of Lux in Lagos, its Brand Building Director, Mr. David Okeme, while highlighting the features of the Lux collection, said:, “The new Lux collection gives seductively soft and fragrant skin that inspires and empowers women everywhere to ignite the spark in their relationship.

    “Infused with delicate floral notes and softening silk essence, our transformed beauty soap range sensuously lathers and scents, leaving the skin irresistible to touch.

    “The iconic beauty brand is dedicated to women. We know that when a woman feels beautiful, she behaves differently, radiating a confidence that attracts those around her, starting with her significant other.”

    According to him, the new Lux collection does not have the power to help women ignite the spark all over the world but its new beauty bars packaging design also does its part for the planet.

    “With delicately luxurious designs unique to each variant. Lux looks gorgeous displayed in your bathroom and would also make a fabulous gift,” he said.

  • Unilever chief urges 70% increase in food production

    The Managing Director,  Unilever Nigeria Plc, Mr. Yaw Nsarkoh, has stressed the need to boost food production by at least 70 per cent to assure food security in the country.

    He warned that there was growing threat of ecosystem collapse because of the emergence of global instability associated with the struggle for global resources which are being consumed at a quicker rate than they can be replenished.

    Speaking at an event in Lagos,  Nsarkoh said with world’s population projected to increase by two billion by 2050, there was urgent need to increase food production by 70 per cent by 2050 to meet expected demand.

    The Unilever chief said the financial crisis arising from the crash in oil prices and the devaluation of the local currency is causing stagnation, depression and poverty.

    “Today, over a billion people go to bed hungry every night. Over 2.5 billion lack access to basic sanitation or to water,” he said.

    Nsarkoh pointed out that the world is cracking from the pangs of poverty and inequality, with the top 85 richest people in the world today having the same wealth as the bottom three and half billion. “A billion people go to bed hungry, while the rest waste 30 to 40 per cent of their food,” he lamented.

    He said this, perhaps, explained why capitalism is being questioned. “Capitalism may have generated a lot of wealth and delivered many benefits, but there is an increasing sense that too many people are being left behind. This situation is bad for the individual, bad for society, and bad for business,” he noted.

    Nsarkoh pointed out that businesses could only thrive in societies and economies-in the long run-where there is absence of poverty and crisis.

    He said: “How we choose to act or react today in response to the broken system is the most critical question the world has ever faced.”

    Nsarkoh, however, said since business has a role to play in the response to the broken system, business needs to step up especially in an environment such as Nigeria’s. “Business should be more than a mere bystander in the very system that gives it life. Businesses are affected, directly or indirectly by the well-being of society,” he said.

    Noting, for instance, that climate change impacts on food supply, drives poverty, and creates political instability, he said Nigeria is key to the African continent on the rise.

    He, however, said Nigeria’s super star status within the African context brings along with it responsibilities.

  • Unilever moves to acquire more shares in subsidiary

    Unilever Overseas Holdings, the United Kingdom-based foreign core investor in Unilever Nigeria Plc, has launched a bid to acquire additional equity stake in the Nigerian subsidiary in a transaction valued at about N43 billion or £144.5 million.

    Unilever Overseas Holdings has already approached the board of directors of Unilever Nigeria Plc about its intention to make an offer to increase its equity stake in the Nigerian company from 50.04 per cent up to a maximum of 75 per cent. The foreign core investor promises to maintain Unilever Nigeria’s listing on the Nigerian Stock Exchange.

    Unilever Overseas Holdings has appointed Citigroup Global Markets Limited and Chapel Hill Advisory Partners Limited as its financial advisers on the proposed transaction.

    A regulatory filing obtained yesterday by The Nation indicated that Unilever Overseas Holdings proposes to acquire about 944.47 million ordinary shares in Unilever Nigeria at an intended offer price of N45.50 per share in cash. Unilever Nigeria opens today at the NSE at N34 per share.

    The proposed offer price represents a premium of 33.8 per cent on the company’s opening price today and a premium of 33.2 per cent on the three-month volume weighted average share price. 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 proposed acquisition is however still subject to the prior approval of the Nigerian Stock Exchange and the Securities and Exchange Commission (SEC).

    While noting that it has not reached any definitive agreement to proceed with the proposal, Unilever Nigeria has indicated that the formal offer documentation will be posted to shareholders as soon as the approvals of all the regulators are obtained.

    Unilever Overseas reserves the right not to proceed with the proposal or to vary the terms of the proposal in any way and no binding offer will be made in respect of any securities until Unilever Nigeria has announced its final results for the year ended December 31, 2014 to the general public.

    Unilever Nigeria distributed N5.30 billion as cash dividends in 2014, the same amount it paid in the previous year. Shareholders received a dividend per share of N2.65. Unilever Nigeria has been struggling with depressed bottom-line.

    Audited report and accounts of Unilever Nigeria for the year ended December 31, 2013 showed that sales rose by 8.0 per cent from N55.55 billion in 2012 to N60.0 billion in 2013. Profit before tax however declined by 16 per cent from N8.19 billion in 2012 to N6.91 billion in 2013. Profit after tax also dropped by 14 per cent from N5.60 billion to N4.81 billion. Earnings per share thus dropped from N1.48 to N1.27.

    The company has however stated that it has been strategic investments and changes that would enhance its long-term competitiveness and profitability, although the immediate impact of these initiatives might constrain returns in the meantime.

    At its last annual general meeting, it unveiled a growth plan to shareholders. While noting the depressed bottom-line in recent years, the conglomerate outlined strategic growth initiatives aimed at strengthening its consumer-centric advantage and ensured it is better placed to provide competitive products through efficient and wide channels at the right prices, irrespective of the changes in the operating environment.

    It noted that shareholders might have to sacrifice short-term gains for long-term returns as the conglomerate seeks to strengthen its fundamentals.

     

  • Unilever moves to acquire more shares in Unilever Nigeria

    Unilever moves to acquire more shares in Unilever Nigeria

    Unilever Overseas Holdings, the United Kingdom-based foreign core investor in Unilever Nigeria Plc, has launched a bid to acquire additional equity stake in the Nigerian subsidiary in a transaction valued at about N43 billion or £144.5 million.

    Unilever Overseas Holdings has already approached the board of directors of Unilever Nigeria Plc about its intention to make an offer to increase its equity stake in the Nigerian company from 50.04 per cent up to a maximum of 75 per cent. The foreign core investor promises to maintain Unilever Nigeria’s listing on the Nigerian Stock Exchange.

    Unilever Overseas Holdings has appointed Citigroup Global Markets Limited and Chapel Hill Advisory Partners Limited as its financial advisers on the proposed transaction.

    A regulatory filing obtained yesterday by The Nation indicated that Unilever Overseas Holdings proposes to acquire about 944.47 million ordinary shares in Unilever Nigeria at an intended offer price of N45.50 per share in cash. Unilever Nigeria opens today at the NSE at N34 per share.

    The proposed offer price represents a premium of 33.8 per cent on the company’s opening price today and a premium of 33.2 per cent on the three-month volume weighted average share price. 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 proposed acquisition is however still subject to the prior approval of the Nigerian Stock Exchange and the Securities and Exchange Commission (SEC).