Emmanuel OchayiIn a surprising move aimed at streamlining its Nigerian operations, PZ Cussons (Holdings) Limited, the major foreign investor in PZ Cussons Nigeria Plc, has tabled a proposal to purchase all the remaining shares held by Nigerian minority shareholders in the subsidiary.
This proposal, disclosed through a regulatory filing at the Nigerian Exchange (NGX), suggests a purchase price of N21 per share.
Join our WhatsApp ChannelPZ Cussons Nigeria conveyed its intention to its board of directors, expressing the desire to acquire the shares held by all other shareholders, contingent upon market conditions.
However, this move awaits approval from the board of PZ Cussons Nigeria, the company’s shareholders, and the necessary regulatory authorities.
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If approved, this acquisition of minority shareholdings will transform PZ Cussons Nigeria into a privately held subsidiary of PZ Cussons (Holdings), resulting in the delisting of its shares from the NGX.
In the proposal, PZ Cussons Group justified the transaction’s necessity, citing a desire to simplify and strengthen its Nigerian operations, thereby setting the stage for the Nigerian business to execute its strategy effectively.
The core investor, with a presence in Nigeria dating back to 1899, sees Nigeria as a crucial market for its long-term plans.
This transaction will proceed under a Scheme of Arrangement in accordance with Section 715 of the Companies and Allied Matters Act, No.3 of 2020, and other relevant regulations.
This will entail convening a general meeting of shareholders through a court-ordered meeting, to be scheduled upon approval from the board, the Securities and Exchange Commission (SEC), and the Federal High Court.
PZ Cussons Nigeria assured shareholders that detailed terms and conditions of the proposed transaction would be provided in a scheme document distributed to all shareholders before the court-ordered meeting. Further updates will follow in due course.
The board of PZ Cussons Nigeria emphasized the need for caution among shareholders and the public when dealing with the company’s shares until more information becomes available.
In a statement, the company said, “The terms and conditions of the proposed transaction will be provided in the scheme document which will be dispatched to all shareholders prior to the court-ordered meeting. Further developments will be communicated to shareholders in due course.”
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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