Pursuits
Unilever to Nestle Raise Nigeria Bubble Concern on Valuation
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Investors are valuing shares of Nestle SA and Unilever’s Nigerian units at about twice the level of their European parents as faster growth in Africa’s most populous nation lifts consumer stocks to record highs.
The 53 percent surge in Nestle Nigeria Plc this year pushed shares to 33 times estimated profit, almost double the ratio for Zurich-listed Nestle and up from a discount last year. Guinness Nigeria Plc is trading at a 53 percent premium relative to its parent, Diageo Plc. Unilever Nigeria Plc has a price-to-earnings multiple of 38, compared with 18 for Unilever, which is based in London and Rotterdam.