Switzerland based consumer goods giant, Nestlé S.A has increased its stake in Nestlé Nigeria Plc with the acquisition of shares worth N104 million.
This information was contained in a notification issued by the leading consumer goods company in compliance with the Nigerian Stock Exchange policy on insider dealing.
According to the notification, Nestlé S.A, one of the largest producers of food and beverage specialty products in the world, bought a total of 77,019 additional shares of its Nigerian Subsidiary, at a price of N1349.00 per share.
This puts the total purchase consideration for the shares of Nestlé Nigeria by the Swiss multinational at N103.9 million.
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 cements Nestle position as the majority shareholder of the company, with an ownership stake of 66.5% or 527,080,970 units of the total issued shares of the company (December 31st, 2020).
What you should know
- Nestlé S.A recently acquired 2.17 million additional shares of its Nigerian subsidiary worth N2.92 billion.
- A recent report, revealed that the consumer goods behemoth is set to earn a mega N32 billion in dividend from its Nigerian subsidiary in 2020.
- Nestlé shares on NSE closed at N1350 per share, the company’s shares are down -10.32% YTD.