Nestlé S.A, the parent company of Nestlé Nigeria Plc, with more than 66.5% ownership stake in its Nigerian subsidiary, has acquired about 2.17 million additional shares in the FMCG company.
This information was contained in a notification of share dealing by an insider, issued by the leading consumer goods company in compliance with the Nigerian Stock Exchange policy on insider dealing.
The notification revealed that Nestlé S.A, the Switzerland-based consumer goods behemoth increased its stake in Nestlé Nigeria, with the acquisition of a total of 2,166,647 additional shares of the FMCG company, at a price of N1349.00 per share.
This puts the total consideration for the shares purchased by the Swiss multinational at N2.92 billion.
Why this matters
- Dealings by insiders of listed companies are corporate actions to be disclosed by the management of the company.
- This is in compliance with NSE’s policy on insider dealing, as the disclosure is key in the effort to ensure transparency and reinforce the trust of the investing public.
- The purchase of the shares of Nestle Nigeria further cements Nestle S.A’s position as the majority shareholder of the company, with an ownership stake of 66.5% (without taking the recent acquisition into consideration).
What you should know
- Nestle S.A is the majority shareholder of Nestlé Nigeria Plc, with 527,080,970 units of the total issued shares of the company (December 31st, 2020).
- According to a recent report, the Swiss multinational is set to earn a mega N32 billion in dividend from its Nigerian subsidiary, for the year ended December 2020.
- Nestlé Nigeria shares at the close of trade today are presently valued at N1350 per share. The share price of the company is down -10.32% YTD.