By Olamide Peters
Further to Naira Insiders prediction in a recent article, Unilever has slashed the size of its rights issue after receiving reactions.
Further, the scheme appears to be, offering shares to current share holders at a discount to the market price.
This is starting to feel more like a rights issue that allows Unilever to borrow from its foreign owners without having to dilute their shareholding too much.
Naira Insider has long predicted that the large number of publicised rights issues, which are at least partially driving NSE exuberance, are not because the companies are much more confident in the Nigerian economy.
It is rather that they are looking for cheap sources of funding that circumvent the exchange rate and scarcity issues caused by the Federal Government.