Britain’s Unilever will subscribe to a 58.85 billion naira ($162 mln) share sale by its Nigerian unit in cash and will not convert a shareholder loan to equity for the rights issue, Unilever Nigeria said on Wednesday.
Unilever granted its Nigerian unit a $108 million loan to help clear currency backlogs in the wake of a dollar shortages in Africa’s biggest economy, brought on by low oil prices.
The household products maker, 60.05 percent owned by Unilever is in the market to raise fresh funds to offset loans owed to related firms and to avoid currency risk in case of a devaluation of the naira, its chief financial officer said.
